Property Valuation
In Delaware, if a capitalization rate is 8% and a property's net operating income is $40,000, what is the estimated value using the income approach?
A$400,000
B$480,000
C$500,000✓ Correct
D$320,000
Explanation
Value = Net Operating Income ÷ Cap Rate = $40,000 ÷ 0.08 = $500,000.
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