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Question
Using the following information, determine the net operating income (NOI) for the first year of operations of the subject property assuming below-line treatment of capital expenditures.
| Subject Property | |
| Number of apartments | 15 |
| Market Rent (per month) | 1000 |
| Vacancy and Collection Losses | 10% of PGI |
| Operating Expenses | 5% of EGI |
| Capital Expenditures | 10% of EGI |
A. $135,000
B. $137,700
C. $153,900
D.$162,000
Answer
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