In which one of the following approaches would NOI play an integral role in determining the value of an investment property?
A)real property approach
B)income approach
C)cost approach
D)real estate investment approach
E)sales comparison approach

Question

Quizplus · Accepted Answer

The income approach to valuing real estate takes into account the potential earning capacity of the property. In order to do this, the net operating income (NOI) must be calculated. Therefore, NOI plays an integral role in determining the value of an investment property using the income approach.

In Which One of the Following Approaches Would NOI Play