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

---

Definitions:

High-end Watches

Luxury watches that embody superior quality, craftsmanship, and design, often representing status and wealth.

Competitive Advantage

A unique attribute or competency a company possesses that enables it to outperform its competitors, providing it with a market advantage.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over competing ones due to their trust and satisfaction with the brand.

Rewards Program

A marketing strategy designed to encourage customer loyalty by offering incentives, such as points, gifts, or discounts, for frequent or sizable purchases.