QUESTION 3 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 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 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 QUESTION 3 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 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 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