Property Valuation
A Nebraska commercial property has a NOI of $85,000 and similar properties sell at a 7.5% cap rate. The indicated value is:
A$1,022,500
B$1,100,000
C$1,133,333✓ Correct
D$637,500
Explanation
Value = NOI ÷ Cap Rate = $85,000 ÷ 0.075 = $1,133,333.
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