Mr Banks Has Asked You to Estimate the Value of an Income-Producing

question 27

Multiple Choice

Mr. Banks has asked you to estimate the value of an income-producing property that he estimates to have gross potential income of $393,000 and a vacancy rate of 10%. The operating costs are expected to be $193,000 per year. You have found that a similar property with an NOI of $55,000 recently sold for $375,000.

• A)$160,700
• B)$375,000
• C)$1,095,682
• D)$1,123,392
• E)$1,883,277

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Definitions:

Ideology

Ideology refers to a system of ideas, values, and beliefs that influence the way individuals perceive and interact with the world.

Belief Systems

A set of principles or tenets that form the basis of somebody’s opinion, philosophies, or practices about the world or life.

Distorting Reality

The act of altering or manipulating perceptions of real-life events or facts, often to serve a specific narrative or agenda.

Misrepresenting Reality

The act of presenting false or distorted information as truthful, often to manipulate public perception or opinion.