Q: Youre given Comp A an income of $100,000, value of $1,000,000 and cap rate of 10%, Comp B an income of $110,000, value of $1,000,000 and cap rate of 11%, Comp C an income of $120,000, value of $1,000,000 and cap rate of 12%, what cap rate would you apply in determining the offering price if your subject property has an income of 130,000?

A. Youre planning to acquire the subject property that has an income of $130,000, applying the cap rate of 12%, your offering price is $1,083,333.

B. Youre planning to acquire the subject property that has an income of $130,000, applying the cap rate of 11%, your offering price is $1,181,818.

C. Youre planning to acquire the subject property that has an income of $130,000, applying the average cap rate of 11%, your offering price is $1,181,818.

D. Youre planning to acquire the subject property that has an income of $130,000, applying the cap rate of 10%, your offering price is $1,300,000.