Calculate the terminal capitalization rate

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Given the following information, calculate the Terminal Capitalization Rate at the end of a “5-Year hold”, for this property: First-year NOI = $18,750, with an annual growth rate of 7 %; Gross Sale in Year 5 = $ 275,000; Acquisition Price = $150,000; Equity Investment = 20%.

Reference no: EM131600212

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