What is necessary capitalization rate for transaction price

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Reference no: EM131535179

Assume the overall market capitalization rate for an investment is 5% and the property’s NOI is $100,000 and the property’s asking price is $2,000,000 (all as of today). What is the necessary capitalization rate for a transaction price equal to $2,200,000? (Show your work)

Reference no: EM131535179

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