Property Valuation
If a Wisconsin apartment building generates a Net Operating Income of $60,000 and the capitalization rate is 6%, what is the estimated value?
A$600,000
B$900,000
C$1,000,000✓ Correct
D$1,200,000
Explanation
Value = NOI / Cap Rate = $60,000 / 0.06 = $1,000,000.
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