Real Estate Math
A Missoula commercial property has a NOI of $55,000 and a cap rate of 7.5%. What is the indicated value?
A$733,333✓ Correct
B$412,500
C$825,000
D$550,000
Explanation
Value = NOI ÷ Cap Rate = $55,000 ÷ 0.075 = $733,333.
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