Real Estate Math
A commercial property has an NOI of $72,000 and sells at a 6% cap rate. What is the sale price?
A$720,000
B$1,200,000✓ Correct
C$432,000
D$600,000
Explanation
Value = NOI ÷ Cap Rate = $72,000 ÷ 0.06 = $1,200,000.
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