Answered: A building has an NOI of $130,000 and…

A building has an NOI of $130,000 and is being valued with a cap rate of 4%. Using the income approach, what is the value of the building? $4,130,000 $1,300,000 $3,250,000 $2,450,000

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

A building has an NOI of $130,000 and is being
valued with a cap rate of 4%. Using the income
approach, what is the value of the building?
$4,130,000
$1,300,000
$3,250,000
$2,450,000

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