Property Valuation
An appraiser values an Arizona commercial property using a cap rate of 7% and an NOI of $63,000. What is the indicated value?
A$441,000
B$900,000✓ Correct
C$700,000
D$840,000
Explanation
Value = NOI ÷ Cap rate = $63,000 ÷ 0.07 = $900,000.
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