What is the valuation of the building using a five cap rate

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Question - Mr. Johnson owns a small apartment building with an annual Gross Rent Roll of $325,000. Assume expenses are expected to be 40% of Gross Rent Roll, what is the valuation of the building using a 5 cap rate?

a) $2.9 million b) $3.9 million c) $4.9 million d) $5.9 million

Reference no: EM133076847

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