Real Estate Math
A property has a NOI of $45,000 and a cap rate of 7.5%. What is the estimated value using the income approach?
A$337,500
B$600,000✓ Correct
C$450,000
D$540,000
Explanation
Value = NOI ÷ Cap rate = $45,000 ÷ 0.075 = $600,000.
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