Question

The percentage which is the sum of the discount rate, the effective tax rate and the recapture rate representing the relationship between net operating income and present value is:_______.

Answer 1

Answer:

Capitalization rate

Explanation:

Capitalization rate is a rate mostly used in real estate valuation that is used as a standard to compare a variety of real estate investments. It is calculated in percentage and in terms of the ratio of the net operating income provided or produced by an asset to the original cost or market value of the of the asset.

Cheers.