Real Estate Math
A commercial property in Tulsa generates a net operating income of $120,000 per year. If an investor requires an 8% capitalization rate, what is the indicated value?
A$960,000
B$1,500,000✓ Correct
C$1,200,000
D$1,000,000
Explanation
Value = NOI ÷ Cap Rate. $120,000 ÷ 0.
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