Property Valuation

An Alaska commercial property has a potential gross income of $200,000, vacancy rate of 5%, and operating expense ratio of 45% of EGI. The NOI is:

A$90,000
B$95,000
C$104,500✓ Correct
D$110,000

Explanation

EGI = PGI × (1 − Vacancy) = $200,000 × 0.95 = $190,000.

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