Property Valuation
A property generates a net operating income (NOI) of $45,000. The market capitalization rate is 6%. What is the estimated value?
A$675,000
B$700,000
C$750,000✓ Correct
D$800,000
Explanation
Value = NOI ÷ Cap Rate = $45,000 ÷ 0.06 = $750,000.
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