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Assume cap rate (R) for comparable property is 8% and net operating income I is $970,000. Both are annualized figures. State the estimated property value of the building by way of IRV by showing and explaining your calculations

NOI is the income in IRV (Income, Rate, and Value) as the PV of a perpetuity in practice, IRV is traditionally employed to estimate property value. Where V represents property value, I represents Net Operating Income, and V I R R r represents the Capitalization Rate (Cap Rate). Notice, in V 0 I 0 and 0 R 1 . So, IRV is really just the present value of a perpetuity: PV , resulting CF r Assume cap rate (R) for comparable property is 8% and net operating income I is $970,000. Both are annualized figures. State the estimated property value of the building by way of IRV by showing and explaining your calculations