Question

Which of the following best describes the type of income used in the income capitalization approach?

Option 1: Gross income
Option 2: Net income
Option 3: Operating income
Option 4: Disposable income

Answer 1

Net income is the type of income used in the income capitalization approach.

Step-by-step explanation:

The type of income used in the income capitalization approach is net income.

Net income refers to the income received after deducting expenses such as taxes, operating costs, and other relevant expenses. It represents the remaining income that can be used for investment and other financial purposes.