Real Estate Math
A Colorado property's cap rate is 8% and the NOI is $64,000. What is the property's value under the income approach?
A$512,000
B$640,000
C$800,000✓ Correct
D$960,000
Explanation
Value = NOI ÷ Cap Rate = $64,000 ÷ 0.08 = $800,000.
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