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QUESTION 35 What is the capitalization rate? / / Property 1 Property 2 Property 3 Subject / NOI 82,000 75,000 94,000 60,000 E
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Answer #1

Capitalization rate = net operating income / market value

Market value = Selling price

Property 1= 82000/1250600= 0.066

Property 2= 75000/1146300= 0.066

Property 3= 94000/ 1433600= 0.066

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