Valuation of Commercial Property using Income Approach

As an investment analyst, you are tasked with evaluating a commercial property valued at $5 million. The property generates $300,000 in net operating income (NOI) annually. Your firm is considering several valuation methods to determine the fair value of the property. One of the most common approaches is the income approach, which involves capitalizing the NOI. Which of the following statements provides the appropriate calculation method to determine the valuation of the property using the income approach?