If a Property Is Priced at $2 Million and the NOI

question 3

Multiple Choice

If a property is priced at $2 million and the NOI is $80,000, what is the capitalization rate?

• A) Eight percent
• B) Six percent
• C) Four percent
• D) Five percent

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Definitions:

Appreciated

An increase in the value of an asset or currency in comparison to other assets, currencies, or benchmarks.

Yen

The official currency of Japan, used as a medium of exchange in one of the world's largest economies.

Dollar Price

The cost of a good, service, or security expressed in terms of the U.S. dollar.

Import

Goods or services brought into one country from another for sale.