Property Valuation
A commercial property in Juneau generates $120,000 in NOI annually. The prevailing cap rate for similar properties is 8%. What is the estimated value?
A$960,000
B$1,200,000
C$1,500,000✓ Correct
D$1,800,000
Explanation
Value = NOI ÷ Cap Rate = $120,000 ÷ 0.08 = $1,500,000.
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