In the income approach to value which of the following steps would an appraiser use last?
A. Divide the annual net income by the appropriate capitalization rate.
B. Estimate the potential annual gross income.
C. Determine the effective gross income by deducting vacancies and collection losses.
D. Determine the annual net income by deducting annual operating expenses.
Answer: A. Divide the annual net income by the appropriate capitalization rate.
Business
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