Real Estate Math
A commercial property in NC generates annual NOI of $120,000. Similar properties sell at a 6.5% cap rate. What is the estimated market value?
A$1,846,154✓ Correct
B$1,750,000
C$1,800,000
D$2,000,000
Explanation
Value = NOI / Cap Rate = $120,000 / 0.065 = $1,846,154.
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