Real Estate Math
A South Dakota property's NOI is $45,000 and the cap rate is 9%. What is the property's estimated value?
A$405,000
B$450,000
C$500,000✓ Correct
D$540,000
Explanation
Value = NOI ÷ Cap Rate = $45,000 ÷ 0.09 = $500,000.
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