Income capitalization converts income to its value equivalent.

Name: Income capitalization converts income to its value equivalent.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Income capitalization is a method used to determine the value of an income-producing property by converting its income into an estimated value. This is done by dividing the property's net operating income (NOI) by a capitalization rate, which represents the expected return on investment. Therefore, income capitalization does indeed convert income to its value equivalent.

Income Capitalization Converts Income to Its Value Equivalent