Property Valuation
If a property has a net operating income (NOI) of $50,000 and the capitalization rate is 5%, what is the estimated value?
A$750,000
B$900,000
C$1,000,000✓ Correct
D$1,250,000
Explanation
Value = NOI / Cap Rate = $50,000 / 0.05 = $1,000,000.
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