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You are interested in purchasing an apartment complex for $2,000,000 that has Net Operating Income (NOI) of $120,000 and is financed with an 80% LTV

You are interested in purchasing an apartment complex for $2,000,000 that has Net Operating Income (NOI) of $120,000 and is financed with an 80% LTV mortgage at 4%

1. What is the Cap Rate?

2. What is the ROA?

3. What is the leverage ratio?

4. Approximate the ROE

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