Real Estate Math
A New York commercial property with an NOI of $180,000 is purchased at a 7.5% cap rate. What is the purchase price?
A$1,800,000
B$2,000,000
C$2,400,000✓ Correct
D$2,700,000
Explanation
Purchase Price = NOI / Cap Rate = $180,000 / 0.075 = $2,400,000.
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