Real Estate Math
A Washington building has an annual NOI of $180,000. The investor uses a 7.5% cap rate. What is the value?
A$2,200,000
B$2,400,000✓ Correct
C$2,500,000
D$2,700,000
Explanation
Value = NOI ÷ Cap Rate = $180,000 ÷ 0.075 = $2,400,000.
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