Given the Following Information, Calculate the Going-Out Cap Rate

question 29

Multiple Choice

Given the following information, calculate the going-out cap rate. Estimated holding period: 5 years, NOI for year 1: $120,000, NOI for year 5: $150,000, NOI for year 6: $155,250, Expected sale price at end of year 5: $1,350,000.

• A) 8.9%
• B) 11.1%
• C) 11.5%
• D) 11.9%

---

Definitions:

Circuit Switching

A telecommunications method that establishes a dedicated physical path between two points for the duration of the connection.

Second-Level Domain

A domain that’s directly below a top-level domain.

Instant Messaging

A form of real-time communication between two or more people based on typed text, images, video, or voice over the Internet.

Internet Cache

A section of the hard drive that stores information that may be needed again, such as Internet protocol addresses and frequently accessed web pages.