Question
Use the following information for Questions 1, 2, and 3: NOI EGI Selling Price Property 1 82,000 122,000 1,250,600 Property 2 75,000 111,500 1,146,300 Property
Use the following information for Questions 1, 2, and 3:
| NOI | EGI | Selling Price | |
| Property 1 | 82,000 | 122,000 | 1,250,600 |
| Property 2 | 75,000 | 111,500 | 1,146,300 |
| Property 3 | 94,000 | 140,000 | 1,433,600 |
| Subject | 60,000 | 108,000 | ? |
1. What is the capitalization rate?
2. What is the value of the subject property by the direct capitalization technique?
3. What is the value of the subject property by the gross income multiplier method?
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Introduction to Finance Markets, Investments and Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
16th edition
1119398282, 978-1-119-3211, 1119321115, 978-1119398288
