Real Estate Math

A Maine property's net income (NOI) is $42,000 and the capitalization rate is 6%. The indicated value is:

A$600,000
B$700,000✓ Correct
C$750,000
D$800,000

Explanation

Value = NOI ÷ Cap Rate = $42,000 ÷ 0.06 = $700,000.

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