Suppose That You Are Attempting to Value an Income Producing

question 31

Multiple Choice

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 overall capitalization rate to be 11.44%. If the projected first year net operating income (NOI) for the subject property is $44,500, what is the indicated value of the subject using direct capitalization?

• A) $49,590.80
• B) $50,225.73
• C) $388,986.00
• D) $509,080.00

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Definitions:

Human Laboratory Studies

Research conducted in controlled, laboratory settings that involve human participants to investigate a wide range of psychological, physiological, or behavioral phenomena.

Intentional Harm

The deliberate infliction of damage or injury upon another individual or group.

Aggression

A range of behaviors or actions intended to harm, intimidate, or assert dominance over others, often resulting from frustration, threats, or social learning.

Culture

The shared beliefs, practices, norms, and values of a group of people that inform their way of life and social interactions.