Property Valuation
A property has an annual gross income of $84,000, a vacancy rate of 5%, and operating expenses of $28,000. What is the NOI?
A$51,800✓ Correct
B$56,000
C$51,200
D$47,600
Explanation
Effective Gross Income = $84,000 − ($84,000 × 5%) = $84,000 − $4,200 = $79,800. NOI = $79,800 − $28,000 = $51,800.
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