Real Estate Math
A property in Delaware has an annual NOI of $52,000. If the cap rate is 6.5%, what is the estimated value?
A$780,000
B$800,000✓ Correct
C$663,000
D$740,000
Explanation
Value = NOI ÷ Cap Rate = $52,000 ÷ 0.065 = $800,000.
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