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Suppose that a government wants to determine the market value of an income - earning property, we will call it Property A , with a

Suppose that a government wants to determine the market value of an income-earning property, we will call it Property A, with a net income of $12,000 a year. The property was purchased for $150,000. What is the capitalization rate of the property? Suppose further that the government has the following information on several comparable income-earning properties: Property B (Net Income-$15,000, purchase price-$175,000), Property C (Net Income-$10,000, purchase price-$160,000), Property D (Net Income-$15,000, purchase price-$180,000), and Property E (Net Income-$18,000, purchase price- $175,000). What would be the market value of the property in question? What would be the market value if it were a non-income earning property?

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