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I know the answer of the question but I don't the process(theory) and how it come to plz show the calculation process and explain Q)

I know the answer of the question but I don't the process(theory) and how it come to

plz show the calculation process and explain

Q) A building with an annual net operating income of $80,000 is valued at $800,000. What is the estimated value of the building if the capitalisation rate is increased by one percentage point?

a) $533,000. b) $727,000. c) $800,000. d) $809,000.

Answer B

Q) A freehold property has just been sold for $32,000,000. The property was subject to a recently negotiated lease but the rental has not yet been disclosed. The purchaser will adopt a notional yield of 8%. Ignoring purchaser's costs, what rental value does this transaction show?

a)$3,200,000. b) $2,560,000. c) $2,650,000. d) $3,020,000.

Answer B

Q) A property has outgoings that are 32% of gross income, which is $125,000. Using a 14% capitalisation rate, what is the value of the property?

a) $607,143. b) $892,587. c) $1,178,571. d) $1,313,025.

Answer A

I know the answer of the question but I don't the process(theory) and how it come to

plz show the calculation process and explain

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