Property Valuation
For income-producing property in Providence, the capitalization rate (cap rate) is calculated as:
AGross income divided by property value
BNet operating income divided by property value✓ Correct
CProperty value divided by net operating income
DGross income minus expenses
Explanation
The capitalization rate (cap rate) is calculated by dividing the net operating income (NOI) by the property value: Cap Rate = NOI / Value.
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