Real Estate Math
A Massachusetts commercial property has annual gross revenue of $500,000, a 7% vacancy factor, and an operating expense ratio of 42%. What is the net operating income?
A$268,100✓ Correct
B$290,000
C$215,000
D$194,500
Explanation
EGI = $500,000 × (1 − 0.07) = $465,000.
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