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Section B (2 Mark)The estimated Net Operating Income of an office building is Rs.

Section B (2 Mark)

The estimated Net Operating Income of an office building is Rs. 12000 per year. An appraiser decide the appropriate capitalization rate is 12% comprised of 10% return on investment and 2% for depreciation, what is the estimated value of the building?

A.

Rs. 1,00,000

B.

Rs 1,20,000

C.

Rs 1,44,000

D.

Rs 1,50,000

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