Practice & MathQuestion 84 of 100
The appraisal approach most appropriate for valuing an income-producing apartment building is the:
a.Cost approach
b.Income approach
c.Sales comparison approach
d.Assessment approach
Explanation
The income approach values property based on the income it produces, often by capitalizing net operating income. It is best suited to investment and commercial properties such as apartment buildings. The cost and sales comparison approaches are more common for other property types.
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