Real Estate Math
A commercial property in Evansville has an NOI of $84,000 and a market cap rate of 8%. What is the estimated value?
A$672,000
B$840,000
C$1,050,000✓ Correct
D$1,200,000
Explanation
Value = NOI ÷ Cap Rate = $84,000 ÷ 0.08 = $1,050,000.
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