Real Estate MathInvestment_calculationsEASY
A property has an annual net operating income of $36,000 and a market capitalization rate of 6.5%. What value indication does direct capitalization produce?
Correct Answer
A) $553,846.15
Direct capitalization divides NOI by the cap rate: $36,000 ÷ 0.065 = $553,846.15.
Answer Options
A
$553,846.15B
$2,340C
0.0000D
$46,153.85Why This Is the Correct Answer
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Why the Other Options Are Wrong
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Deep Analysis of This Real Estate Math Question
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Background Knowledge for Real Estate Math
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Real World Application in Real Estate Math
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Related Topics & Key Terms
Key Terms:
investment_calculationscap_ratevalue_from_capinvestment_math
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