Real Estate Math
An income property in Greensboro has an NOI of $55,000 and a cap rate of 6.5%. Its value using the income approach is approximately:
A$757,692
B$846,154✓ Correct
C$895,000
D$693,750
Explanation
Value = NOI / Cap Rate = $55,000 / 0.065 = $846,154 (approximately).
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