Given the following information, please calculate the capita…
Given the following information, please calculate the capitalization rate for the following apartment complex. Please show all of your work, including any equations you use. Please also write an explanation as to how to interpret the capitalization rate. Number of apartments: 15Market Rent (per month): $1,000Vacancy and Collection Loss: 10% of potential gross incomeOperating Expenses: 5% of effective gross incomeCapital Expenditures: 10% of effective gross incomeAcquisition Price: $1,710,000