Alternative Investments Q81

0. Lydia Smith wishes to find an apartment building’s worth using the income approach. The gross potential rental income is $1,750,000, and the net operating income is $362,500. Other bits of information available include the following:
Financing percentage: 75%
Market capitalization rate: 8%
Cost of equity: 10%

Which of the following is most likely to be appraisal price of the building?

Answer
Comment
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Option : C
Explanation :

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