Property Valuation
A Pennsylvania income property has an effective gross income (EGI) of $100,000 and an operating expense ratio of 40%. What is the NOI?
A$40,000
B$60,000✓ Correct
C$100,000
D$140,000
Explanation
NOI = EGI × (1 − Expense Ratio) = $100,000 × (1 − 0.40) = $100,000 × 0.
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