Question: 2) Cap italization Rates (10 points) A) What is the Cap Rate for a property that is selling for $2.8 million which has a Net

2) Capitalization Rates (10 points)

A) What is the Cap Rate for a property that is selling for $2.8 million which has a Net Operating Income of $150,000?

B) I feel that Class A office properties in West Bloomfield, Michigan should have a Cap Rate of 7.5%. How much might I be willing to pay for an office building that has an NOI of $180,000?

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