Property Valuation
A Reno, Nevada commercial property sold for $1,800,000 with a cap rate of 6%. What is the property's annual NOI?
A$108,000✓ Correct
B$300,000
C$30,000,000
D$90,000
Explanation
NOI = Value × Cap Rate = $1,800,000 × 6% = $108,000. This is the reverse of the typical cap rate calculation where Value = NOI ÷ Cap Rate.
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