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What capitalization rate was used by the analysis

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A real estate analysis estimates the market value of an income-producing property at R2 560 000. The annual gross potential rental income is R686 000, the annual property operating expenses and taxes are R178 800, depreciation is R60 000 and the annual vacancy and collection losses are R89 400. What capitalization rate was used by the analysis to assess the property at R2 560 000?

Reference no: EM133061756

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