Find the Value by Use of the Income Approach

question 33

Multiple Choice

Find the value by use of the income approach. (round to the nearest $100)
1) an older 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

---

Definitions:

Fiduciary Duties

Fiduciary duties refer to the obligations of loyalty and care that certain individuals, such as trustees or corporate officers, owe to those they serve.

Oppressive Conduct

Actions by major stakeholders in a corporation that unfairly prejudice the interests of minority shareholders.

Articles Of Incorporation

Legal documents filed with a governmental body to legally document the creation of a corporation, detailing key aspects such as name, purpose, and structure.

Bylaws

Written rules and regulations adopted by an organization or community to govern its actions and ensure structured management.