Property Valuation
A Minnesota duplex has a gross annual income of $28,800, vacancy allowance of 5%, and operating expenses of $10,000. What is the NOI?
A$17,360✓ Correct
B$18,800
C$18,000
D$16,960
Explanation
EGI = $28,800 - ($28,800 x 5%) = $28,800 - $1,440 = $27,360. NOI = EGI - Operating expenses = $27,360 - $10,000 = $17,360.
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