Question
Eddie owns a strip mall that generates $100,000 of annual income. Assuming a capitalization rate of 8%, what is the value of the strip mall
Eddie owns a strip mall that generates $100,000 of annual income. Assuming a capitalization rate of 8%, what is the value of the strip mall using the income method (capitalization of earnings)?
Group of answer choices
$800,000
$1,250,000
$108,696
$80,000
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Smith and Roberson Business Law
Authors: Richard A. Mann, Barry S. Roberts
15th Edition
1285141903, 1285141903, 9781285141909, 978-0538473637
