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Which of the Following Income Capitalization Techniques Is Based on the Principle

Question 43

Multiple Choice

Which of the following income capitalization techniques is based on the principle that buyers will not pay more for a property than the present value (PV) of all future Net Operating Incomes (NOI) ?


A) Direct capitalization method
B) Effective gross income method
C) Potential gross income method
D) Discounted cash flow method

Correct Answer:

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