Real Estate Math
An Arizona property has annual gross income of $96,000, vacancies of 8%, and operating expenses of $32,000. If the cap rate is 7%, what is the value?
A$805,714✓ Correct
B$913,143
C$720,000
D$823,429
Explanation
EGI = $96,000 × (1 - 0.08) = $88,320.
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