Question: You are considering purchasing a small income producing building for $12,500,000. The property produces EGI of $1,000,000 and NOI of $625,000 per year. Given these

You are considering purchasing a small income producing building for $12,500,000. The property produces EGI of $1,000,000 and NOI of $625,000 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.

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