Find the Value by Use of the Income Approach

question 15

Multiple Choice

Find the value by use of the income approach. (round to the nearest $100)
1) three-unit apartment rents for $1,000 per month per unit
2) vacancy factor of 5%
3) annual operating expenses $10,000
4) capitalization rate of 8%

• A) $302,500
• B) $288,000
• C) $276,500
• D) $275,000

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Definitions:

Shape

The external form, contours, or outline of someone or something.

Movement

The act or process of moving, involving physical displacement of the body or parts of the body, usually as a result of muscular and neural activity.

Feature Detector Cells

Neurons in the visual cortex that respond selectively to specific features of visual stimuli, such as lines, edges, or movement.

Visual Information

Data perceived through the sense of sight, including colors, patterns, and movements, which are processed by the visual cortex in the brain.