Property Valuation
The income multiplier for a commercial property is 8.5. If the property sells for $850,000, what is the annual net operating income?
A$85,000
B$100,000✓ Correct
C$110,000
D$115,000
Explanation
If the income multiplier is used as a cap rate equivalent: NOI = Sale Price × Cap Rate (implied). Alternatively, if the multiplier is GRM: Annual Rent = $850,000 ÷ 8.5 = $100,000.
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