Mike Has Decided to Purchase a Real Estate Property That

Multiple Choice

Mike has decided to purchase a real estate property that is expected to generate a net operating income (NOI) of $63,000 per year. With a 9% cap rate, the property would have an estimated value of:

A) $630,000.
B) $187,000.
C) $700,000.
D) $965,000.
E) $235,000.