Question: Using the Net Operating income / Cap Rate = Value formula, most appraisers adhere to an above line treatment of captal expenditures. This implies which

Using the "Net Operating income / Cap Rate = Value" formula, most appraisers adhere to an "above line" treatment of captal expenditures. This implies which of the following?
Whiple Choce
Capity expendines are added to net operating income.
Capis expendures me subtected in the calculation of net operating income.
Capiai expenderes are encluded from all calculations because they are difficult to estimate.
Coper expendives tre subtected from net operating income so obtain a net cash flow messure.
Using the "Net Operating income / Cap Rate =

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