Question: Question 5 (1 point) You are considering purchasing a small income producing building for $12,500,000. The property produces EGI of $1,000,000 and NOI of $750,000

Question 5 (1 point) You are considering purchasing a small income

Question 5 (1 point) You are considering purchasing a small income producing building for $12,500,000. The property produces EGI of $1,000,000 and NOI of $750,000 per year. Given these assumptions, calculate the implied first year capitalization rate. Enter your answer below as a decimal with 4 places. For example, 8% would be entered as 0.0800 and 8.24% would be entered as 0.0824. Your Answer: Answer Question 6 (2 points) Show your work from the previous question. How did you calculate the cap rate

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