Property Valuation
An appraiser applies a 7% cap rate to a NOI of $42,000. What is the estimated property value?
A$294,000
B$600,000✓ Correct
C$420,000
D$294,117
Explanation
Value = NOI ÷ Cap Rate = $42,000 ÷ 0.07 = $600,000.
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