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You are searching for a commercial property to buy in Brooklyn. You have narrowed your search down to three properties. Property (1) has a cap

You are searching for a commercial property to buy in Brooklyn. You have narrowed your search down to three properties. Property (1) has a cap rate of 7, property (2) has a cap rate of 8, and (property (3) has a cap rate of 6. Property (3) must be the better choice because the cap rate implies that property (3) has the highest net income of the three properties.

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