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1 May, 08:30

What is the estimated market value of the same building described above utilizing the direct capitalization method if the cap rate for apartments of similar quality is 7%? Use the 2nd year NOI solved for above.

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  1. 1 May, 12:14
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    Answer=$865,882.14

    Explanation:

    Current Market Value = Net Operating Income/Cap Rate

    = $60,612 / 0.07 (Using 2nd year NOI & Cap rate as 7%)

    = $865,882.14
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