Property Valuation
An income property has an NOI of $50,000 and the market cap rate is 7.5%. What is the estimated value?
A$500,000
B$666,667✓ Correct
C$750,000
D$375,000
Explanation
Value = NOI ÷ Cap Rate = $50,000 ÷ 0.075 = $666,667.
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