Property Valuation
If a commercial property has a net operating income (NOI) of $90,000 and comparable properties are selling at a 6% capitalization rate, the estimated value is:
A$540,000
B$1,200,000
C$1,500,000✓ Correct
D$1,800,000
Explanation
Value = NOI ÷ Cap Rate = $90,000 ÷ 0.06 = $1,500,000.
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