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:

Robert Fulton

An American engineer and inventor credited with developing the first commercially successful steamboat in the early 19th century, significantly impacting transportation.

Steamboats

Paddlewheelers that could travel both up- and downriver in deep or shallow waters; they became commercially viable early in the nineteenth century and soon developed into America’s first inland freight and passenger service network.

Upstream Commerce

The activities involved in the sourcing and procurement processes before goods reach the retailer or final consumer.

Water Transportation

A method of transporting goods and people using waterways, including oceans, rivers, lakes, and canals, utilizing various types of vessels.