Given the Following Information, Calculate the Going-In Capitalization Rate for the Specific

question 12

Multiple Choice

Given the following information, calculate the going-in capitalization rate for the specific property. First-year NOI: $18,750, Acquisition price: $150,000, Equity Investment: 20%.

• A) 2.5%
• B) 12.5%
• C) 15.6%
• D) 62.5%

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Definitions:

National Organization

A large, often nonprofit, group that operates in multiple areas or across countries, focusing on specific missions or causes.

Grand United Order

A fraternal organization in the United States, often affiliated with African-American communities, offering support and advocacy for its members.

Supreme Court

The highest federal court in the United States, possessing the ultimate appellate jurisdiction over all federal and state court cases dealing with federal law.

Massachusetts

A U.S. state in New England known for its significant colonial history.