Use the following information for the next two questions:

Net income Gross Income Selling Price

Property 1 82,000 1,250,600 122,000

Property 2 75,000 111,500 1,146,300

Property 3 94,000 140,000 1,433,600

Subject 60,000 108,000 ?

What is the capitalization rate?

a. 0.047

b. 0.115

c. 0.066

d. 0.097 52.

what is the value of the subject property by the direct capitalization technique?

a. $522,000

b. $417,100

c. $618,600

d. $909,100