Real Estate Math
A Texas commercial building generates gross annual rents of $120,000. The operating expense ratio is 40%. What is the net operating income (NOI)?
A$48,000
B$60,000
C$72,000✓ Correct
D$80,000
Explanation
Operating expenses = $120,000 × 0.40 = $48,000. NOI = $120,000 − $48,000 = $72,000.
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