CFA Level I sample question

CFA Level I Real Estate and Infrastructure question

Alternative Investments / Real Estate and Infrastructure

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Real Estate and Infrastructure sample question

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Alternative Investments

Real Estate and Infrastructure

An appraiser values an office property using the income approach. A comparable property recently sold for USD12.5 million and generates annual net operating income of USD875,000. The subject property has potential gross income of USD1,600,000, vacancy and collection losses of 6% of potential gross income, and operating expenses of USD454,000. The value of the subject property is closest to:

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