Property Valuation
If a Connecticut income property has an NOI of $90,000 and the market cap rate is 6%, what is the estimated value using the income approach?
A$540,000
B$900,000
C$1,200,000
D$1,500,000✓ Correct
Explanation
Value = NOI ÷ Cap Rate = $90,000 ÷ 0.06 = $1,500,000.
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