ValuationValuation_appraisalMEDIUM
A capitalization rate of 8% on a property with $40,000 NOI indicates a value of:
Correct Answer
C) $500,000
Value = NOI ÷ Cap Rate. $40,000 ÷ 0.08 = $500,000.
Answer Options
A
$320,000B
$400,000C
$500,000D
$480,000Video Explanation3 min
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Related Topics & Key Terms
Related Topics:
property-valuation-methodsreal-estate-investment-analysisnet-operating-income-calculationincome-approach-appraisal
Key Terms:
capitalization ratenet operating incomeincome capitalization approachNOIproperty valuation
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