Property Valuation
A Mississippi property had gross rents of $24,000 per year. Expenses were $9,600. At a 7% cap rate, the value is approximately:
A$200,000
B$207,000✓ Correct
C$195,000
D$210,000
Explanation
NOI = $24,000 − $9,600 = $14,400. Value = $14,400 ÷ 0.07 = $205,714. The07 ≈ $205,714. The best answer among the choices is $207,000.
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