An investor acquires an industrial property in San Antonio, Texas for $250,000, and she projects that the property will appreciate (increase in value) at an annual rate of 2.5% per year. According to a market survey produced by a local real estate firm, industrial properties in the San Antonio market typically sell at a cap rate of 7.5%.

If the investor plans to sell the property at the end of 7 years, what price should she should expect to sell the property for?

Answer rating: 100% (QA)

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