QUESTION 19 You buy the property at the price of $7,000,000, and it is expected to generate $468015 net operating income in the following year. What is your 'going in' Cap Rate at purchase? Write your answer in percent, but do not include the % sign (e.g. if you get 5.63898%, write 5.64).

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 13EA: Jullo Company is considering the purchase of a new bubble packaging machine. If the machine will...
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QUESTION 19
You buy the property at the price of $7,000,000, and it is expected to generate $468015 net operating income in the
following year. What is your 'going in' Cap Rate at purchase? Write your answer in percent, but do not include the %
sign (e.g. if you get 5.63898%, write 5.64).
Transcribed Image Text:QUESTION 19 You buy the property at the price of $7,000,000, and it is expected to generate $468015 net operating income in the following year. What is your 'going in' Cap Rate at purchase? Write your answer in percent, but do not include the % sign (e.g. if you get 5.63898%, write 5.64).
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