About a real estate appraisal

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1. A property produces a first-year NOI of $74,000. Both the income and property value are expected to increase by 3% per year. What is the indicated property value using a 10% discount rate?

$1,001,443

$1,057,143

$ 576,923

$ 833,333

2. Which of the following statements is NOT TRUE about a real estate appraisal?

It is an estimate of the value of real property.

Definition of the appraisal problem is the first step.

It focuses exclusively on the physical property.

It utilizes general and specific data.

Reference no: EM131298019

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