CFA Practice Question

There are 139 practice questions for this study session.

CFA Practice Question

An real estate investment project offers projected net operating income of $43,500 per year. Assuming a capitalization rate of 15%, the fair market value according to the income approach would be closest to:
A. $29,000
B. $290,000
C. $625,000
Explanation: The income approach would estimate the market value to be NOI/k = $43,500/.15 = $290,000.

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