Close Window Moving to another question will save this respo

Close Window Moving to another question will save this response. Question 1 of30 Question 1 5 points Save Anew The owners of the Amazing Hotel have decided to soll their property. The Amazing Hotel is a luxury, boutique hotel and has a trailing 12 monts cash flow o $5,438,000. A select-serice market conditions, approximately how much would the Amazing Hotel sel O $44,640,000 ?$57240,000 $64,000,000 s Moving to another question will save this response. MacBook Air 888 a 5 3 4. 2

Solution

Under the capitalization of income approach, property is valued as :

Property Value = Cash flow of last 12 months / Capitalization rate

So the property value will be assessed at = $5438000/9.5%

= $57,242,105 and its approx. rounded value is $57,240,000 Option C is correct