Ask Question
13 November, 01:23

What is the estimated market value of the same building described above utilizing the direct capitalization method if the cap rate for apartments of similar quality is 7%? Use the 2nd year NOI solved for above.

+2
Answers (1)
  1. 13 November, 01:43
    0
    Answer=$865,882.14

    Explanation:

    Current Market Value = Net Operating Income/Cap Rate

    = $60,612 / 0.07 (Using 2nd year NOI & Cap rate as 7%)

    = $865,882.14
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “What is the estimated market value of the same building described above utilizing the direct capitalization method if the cap rate for ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers