5 Editing Paragraph Styles 16. An investment property generates $48,093 EGI after the vacancy loss of 5.7% has been considered. If fixed and variable expenses total 518,691 and the replacement reserves are estimated at $2,600 annually, what is the value of the property if the market derived overall capitalization rate is 7.3261% (rounded to the nearest $1,000)? a. $341,000 b. $355,000 c. $366,000 d. S371.000 17. When developing the sales comparison approach for an income producing property, while analyzing sales data, which technique involves dividing the sale price of the comparable property into components for analysis? a Economies of scale b. Extraction method c. Ranking and weighting d Units of comparison 18. Which is a true statement regarding the relationship of the sales comparison approach and the valuation of a small income producing investment property? a. For small income properties, the sales comparison approach will typically be most reliable. b. The method does not reflect market actions of buyers and sellers of income properties. The sales comparison approach will often be developed as support of, or supported by the income approach d. The sales comparison approach will seldom be developed c. 19. A property is valued at $3,500,000. If it generates an annual income of $280,000 and annual expenses total $40,000, what is the gross rent multiplier? 12.5 87.5 125 150 a b. c. d. DE