Property Valuation
A property has an EGI of $120,000 and operating expenses of $48,000. What is the net operating income (NOI)?
A$48,000
B$72,000✓ Correct
C$120,000
D$168,000
Explanation
NOI = EGI − Operating Expenses = $120,000 − $48,000 = $72,000. Using the values given ($120,000, $48,000), apply the appropriate formula.. The correct answer is $72,000.. This is a common calculation on the Alaska real estate exam.
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