Reference no: EM131354460
Use the following information for the next two questions:
Net income Gross Income Selling Price
Property 1 82,000 1,250,600 122,000
Property 2 75,000 111,500 1,146,300
Property 3 94,000 140,000 1,433,600
Subject 60,000 108,000 ?
What is the capitalization rate?
a. 0.047
b. 0.115
c. 0.066
d. 0.097 52.
what is the value of the subject property by the direct capitalization technique?
a. $522,000
b. $417,100
c. $618,600
d. $909,100
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