Property Valuation
A New Mexico property generates $30,000 in annual net operating income (NOI). If the capitalization rate is 6%, what is the estimated value?
A$180,000
B$300,000
C$500,000✓ Correct
D$600,000
Explanation
Value = NOI / Cap Rate = $30,000 / 0.06 = $500,000.
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