Real Estate Math
A property has an NOI of $42,000 and debt service of $30,000 per year. What is the before-tax cash flow?
A$12,000✓ Correct
B$72,000
C$42,000
D$30,000
Explanation
Before-tax cash flow = NOI − Debt Service = $42,000 − $30,000 = $12,000. Using the values given ($42,000, $30,000), apply the appropriate formula..
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