Property Valuation
A property produces a net operating income (NOI) of $60,000 per year. If the capitalization rate is 6%, the property's estimated value using the income approach is:
A$360,000
B$600,000
C$1,000,000✓ Correct
D$3,600,000
Explanation
Value = NOI ÷ Capitalization Rate. $60,000 ÷ 0.
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