Property Valuation
A South Dakota commercial property's NOI is $72,000 and comparable cap rates are 8%. The estimated value is:
A$576,000
B$720,000
C$900,000✓ Correct
D$1,000,000
Explanation
Value = NOI ÷ Cap Rate = $72,000 ÷ 0.08 = $900,000.
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