Question
An appraiser collects the following information for a proposed new building assumed to be the highest and best use of the site: Net operating income=
An appraiser collects the following information for a proposed new building assumed to be the highest and best use of the site: Net operating income= $85,000 Building capitalization rate= 0.11 Building value (based on cost)= $700,000 Land capitalization rate =0.08 What is the estimated value of the property?
Question options:
$777,000
$800,000
$905,263
$972,727
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
11th Canadian Edition
1259024970, 978-1259265921
