Given the Following Information, Calculate the Net Operating Income Assuming

question 13

Multiple Choice

Given the following information, calculate the net operating income assuming below-line treatment of capital expenditures. Property: 4 office units, Contract Rents per unit: $2500 per month, Vacancy and collection losses: 15%, Operating Expenses: $42,000, Capital Expenditures: 10%:

• A) $48,000
• B) $60,000
• C) $95,000
• D) $102,000

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Definitions:

Rewarded

Pertains to receiving a benefit or compensation in return for an action or service.

George Homans

An American sociologist known for his work in developing social exchange theory, explaining social behavior in terms of costs, benefits, and expectations of rewards.

Success

The achievement of a goal or objective, often recognized through the attainment of fame, wealth, or social status.

Especially Pleasing

Specially or particularly gratifying, enjoyable, or satisfying to an individual's tastes or senses.