Suppose that you are attempting to value an income producing property using the direct capitalization approach. Using data from comparable properties, you have determined the
Suppose that you are attempting to value an income producing property using the direct capitalization approach. Using data from comparable properties, you have determined the overall capitalization rate to be 10.00%. If the projected first year net operating income (NOI) for the subject property is $47,700, what is the indicated value of the subject using direct capitalization?
multiple choice
$548,550.00
$453,150.00
$500,850.00
$477,000.00
Step by Step Solution
There are 3 Steps involved in it
Step: 1
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Authors: Roger Staiger
2nd Edition
1138046183, 978-1138046184
