Property Valuation
A Minnesota property has a gross annual income of $120,000, a 7% vacancy rate, and operating expense ratio of 40% of EGI. What is the NOI?
A$66,744✓ Correct
B$72,000
C$64,440
D$68,400
Explanation
EGI = $120,000 x (1 - 7%) = $120,000 x 0.93 = $111,600.
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