A Property That Is Similar to One That You Are

question 46

Multiple Choice

A property that is similar to one that you are considering buying has just sold for $393,000 and you estimate that it has an NOI of $70,000. Based on this information, what is the cap rate?

• A)10.39%
• B)12.03%
• C)15.92%
• D)17.81%
• E)18.71%

---

Definitions:

Sourcing Of Goods

The process of finding and acquiring raw materials, components, or products from suppliers for use in manufacturing or sale.

Domestic-Shoring

The practice of relocating a company's operations back to its domestic country from abroad to reduce costs or meet regulatory requirements.

Purchasing Costs

The costs associated directly with buying goods or services, including price of the product, taxes, shipping, and handling fees.

Raw Materials

The basic materials from which products are made, typically extracted from natural resources or semi-processed before manufacturing begins.