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s Question Completion Status: Moving to another quostion wll save this responso

ID: 2396582 • Letter: S

Question

s Question Completion Status: Moving to another quostion wll save this responso Question 13 Income capitalization approach: O sale price of a property is calcuiated by dividing last year's cash fow from operations by WACC O uses gross sales value to measure cash fow from operations O discounts cash flows using the cap rate O includes both cash flow out of operations and sale price of a property for calculation Question 13 of 30 Moving to another question will save this response. MacBook Air 888 a 1 6 5 4 3 2

Explanation / Answer

Gross annual income is used for the valuation of the operating income as per the income capitalization approach

So here correct answer is B

As use of gross sales value is there is operating cashflows valuation