Sharma, a real estate professional, is representing a client who is interested in purchasing a mixed use development. Sharma has determined the market capitalization rate for this type of property is 5% and that property will have a net operating income of $450,000 this year. What is the estimated value of the property?

A) $9,500,000

B) $9,000,000

C) $10,000,000

D) $8,800,000

Answer rating: 100% (QA)

The estimated value of a property can be calculated using the formula Estimated Value Net Op... View the full answer