Question

This appraisal approach estimates the value of the present worth of the future rights to the income the property generates by converting the net income of the property into a value. This is known as:_____________.

Answer 1

The income approach.

Step-by-step explanation:

This appraisal approach evaluates the importance of the present value of the future rights to the income the estate generates by converting the net income of the estate into a value. This is known as the income approach which is also recognized as capitalization. It is a type of real estate appraisal method and it is also used to appraise investment or income-producing properties.