The NOI Is $1,000,000, the Debt Service Is $800,000 of Which

question 13

Multiple Choice

The NOI is $1,000,000, the debt service is $800,000 of which $700,000 is interest, the depreciation expense is $250,000. What is the Before-tax Cash Flow to the equity investor (EBTCF) if there are no capital improvement expenditures or reversion items this period?

• A) $50,000
• B) $200,000 = $1,000,000 - $800,000 = PBTCF - DS.
• C) $300,000
• D) $750,000
• E) Insufficient information to answer this question.

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Definitions:

Latent Learning

Learning that occurs without any obvious reinforcement and is not demonstrated until there is an incentive to perform.

Insight Learning

A cognitive process where an individual suddenly realizes how to solve a problem without trial-and-error, often seen as a form of intuitive understanding.

Punishment By Removal

The punishment of a response by the removal of a pleasurable stimulus.

Negative Reinforcement

A response or behavior is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.