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Check all true statements regarding Cap Rates A form of average cap rate is used to valuate commercial properties depending on its industry and/or location

Check all true statements regarding Cap Rates

A form of average cap rate is used to valuate commercial properties depending on its industry and/or location

Cap Rates are used when valuating commercial properties via the cost approach

As cap rates used to valuate a property decreases, the property value increases holding all else equal

Cap Rate for One Property = Property Value/NOI

Valuing a property via Cap Rates is analogous to receiving a perpetuity in the form of a NOI being the payment every year and the Cap Rate being the discount rate

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