How much is this property worth

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Question - An apartment building is generating income of $250,000. Maintenance expenses total 40% of this income and vacancy loss is 12% of income, the market supports a capitalization rate of 12.75%. How much is this property worth using the income capitalization approach?

a. $882,353

b. $941,176

c. $1,875,000

d. $937,500

Reference no: EM133059428

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