Property Valuation
In the income capitalization approach, a property with a net operating income (NOI) of $36,000 and a capitalization rate of 8% has an estimated value of:
A$288,000
B$360,000
C$450,000✓ Correct
D$500,000
Explanation
Value = NOI ÷ Cap Rate = $36,000 ÷ 0.08 = $450,000.
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