Property Valuation
A property has a GPI of $120,000, 5% vacancy and credit loss, and operating expenses of $45,000. What is the NOI?
A$75,000
B$69,000✓ Correct
C$114,000
D$120,000
Explanation
Step 1: EGI = $120,000 × (1 − 0.05) = $114,000. Step 2: NOI = EGI − Operating Expenses = $114,000 − $45,000 = $69,000.
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