Real Estate Math
A NJ income property valued at $900,000 has an 8% cap rate. If the cap rate rises to 9% (with the same NOI), what is the new value?
A$800,000✓ Correct
B$810,000
C$720,000
D$750,000
Explanation
NOI = $900,000 × 0.08 = $72,000.
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