Property Management

A net operating income of $55,000 and a cap rate of 8.5% produces an estimated property value of approximately:

A$579,000
B$617,000
C$647,000✓ Correct
D$693,000

Explanation

Value = NOI ÷ Cap Rate = $55,000 ÷ 0.085 ≈ $647,059 ≈ $647,000.

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