Suppose that you are attempting to value an income-producing property using the direct capitalization approach. Using...
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Suppose that you are attempting to value an income-producing property using the direct capitalization approach. Using data from comparable properties, you have determined the capitalization rate to be 7.5%. If the projected first-year net operating income (NOI) for the property is $135,500, what is the indicated value of the subject using direct capitalization? Suppose that you are attempting to value an income-producing property using the direct capitalization approach. Using data from comparable properties, you have determined the capitalization rate to be 7.5%. If the projected first-year net operating income (NOI) for the property is $135,500, what is the indicated value of the subject using direct capitalization?
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