Property Valuation
A Maryland rental property generates $36,000 net operating income annually. Using a 6% capitalization rate, the indicated value is:
A$216,000
B$360,000
C$600,000✓ Correct
D$720,000
Explanation
Value = NOI ÷ Cap Rate = $36,000 ÷ 0.06 = $600,000.
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