A
Acadi
Fi
Courses
Knowledge Hub
Community
Practice
Pricing
About
Search
⌘K
Question Bank
/
CFA
/
Level II
/
Alternative Investments
Alternative Investments
Medium
A commercial office building generates gross potential rent of $1.8 million, has a vacancy rate of 12%, and operating expenses of $520,000. Using a capitalization rate of 7.2%, the estimated property value is closest to:
A
$12.78 million
B
$17.78 million
C
$22.00 million
D
$10.64 million
Select an answer to continue
Tags
#real-estate
#cap-rate
#noi
#property-valuation
#income-approach
More Alternative Investments questions
Start full Level II quiz