3. Income Capitalization Approach (30 Percent) Use the information in Table 3 to apply the Income Capitalization Approach to the questions listed below.

3. Show all calculations for each part of the problem. Round to 2 decimal places.

a) Calculate the capitalization rate of each comparable sale. Place your calculation in Table 3. Round results to three decimal places. Sale 1

Sale 2

Sale 3

Sale 4

Sale 5

Sale 6

b) Select a capitalization rate to use on the subject property. Explain your selection.

c) If the owner of the subject property has an estimated annual gross rental income of $265,000 and annual expenses of $155,000. Calculate net operating income.

d) Estimate the final total value of the subject property using the income capitalization approach to valuation.

3. Income Capitalization Approach (30 Percent) Use the information in Table 3 to apply the Income Capitalization Approach to the questions listed below. Table 3. Selected Data, Comparable Sales and Subiect Property. 3. Income Capitalization Approach (30 Percent) Use the information in Table 3 to apply the Income Capitalization Approach to the questions listed below. Table 3. Selected Data, Comparable Sales and Subiect Property