The purpose of capitalization is to estimate

A) present value based on current or expected income
B) future value based on current gross income
C) present value by multiplying net income by rent multiplier
D) operating expenses based on the highest and best use

Answer: A) present value based on current or expected income

Business

You might also like to view...

Intellectual property falls into a category of property known as intangible rights

Indicate whether the statement is true or false

Business

When determining the amount of interest to be paid on a bond, which of the following information is not necessary?

a. The face amount of the bonds b. The selling price of the bonds c. The face rate of interest on the bonds d. The length of the interest period, annually or semiannually

Business