Property Valuation
An Alaska commercial property has a net operating income of $60,000 per year. Using a 6% cap rate, the estimated value is:
A$360,000
B$600,000
C$1,000,000✓ Correct
D$6,000,000
Explanation
Value = NOI ÷ Cap Rate = $60,000 ÷ 0.06 = $1,000,000.
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