NOI for a property is $578,000, the in-going yield is at a 2% premium to...

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NOI for a property is $578,000, the in-going yield is at a 2% premium to the risk-free rate and capital appreciation is 5.5% p.a. What is the value of the property using direct capitalization? Government bonds are yielding 2.47%.

a.

$12,930,649

b.

$10,566,728

c.

$8,791,749

d.

$9,347,457

e.

$14,208,411

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