What calculation represents capitalization based on net income of $964,210 at a rate of 8.4%?

To determine the capitalization based on the net income and the capitalization rate, you can use the formula:

Value = Net Income ÷ Capitalization Rate

In this case, the net income is $964,210 and the capitalization rate is 8.4% (which can also be expressed as 0.084 in decimal form).

Now, plugging the values into the formula:

Value = $964,210 ÷ 0.084

Calculating this gives:

Value = $11,478,670

This result indicates the estimated value of the property based on the provided net income and capitalization rate. The correct option reflects the outcome of that calculation accurately. This method is commonly used in real estate to assess the worth of an income-producing property, making it a crucial concept in property management and investments.