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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 incomeearning property, we will call it Property A with a net income of $ a year. The property was purchased for $ What is the capitalization rate of the property? Suppose further that the government has the following information on several comparable incomeearning properties: Property B Net Income$ purchase price$ Property C Net Income$ purchase price$ Property D Net Income$ purchase price$ and Property E Net Income$ purchase price $ What would be the market value of the property in question? What would be the market value if it were a nonincome earning property?
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