Real Estate Math
A property's EGI is $120,000, operating expenses are $48,000, and debt service is $30,000. What is the before-tax cash flow?
A$42,000✓ Correct
B$72,000
C$90,000
D$120,000
Explanation
NOI = $120,000 − $48,000 = $72,000. Before-tax cash flow = $72,000 − $30,000 (debt service) = $42,000.
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