Using the Following Information, Determine the Net Operating Income (NOI)

question 7

Multiple Choice

Using the following information, determine the net operating income (NOI) for the first year of operations of the subject property using "above-line" treatment of capital expenditures. $$\begin{array} { | c | c | } \hline \text { Subject Prqperty } & \\\hline \text { Nurber of apartrments } & 15 \\\hline \text { Market Rent (permonth) } & 1000 \\\hline \text { Vacarcy ard Collecticn Losses } & 10 \% \text { of PGI } \\\hline \text { Operating Expenses } & 5 \% \text { of EGI } \\\hline \text { Capital Expenditures } & 10 \% \text { of EGI } \\\hline\end{array}$$

• A) $135,000
• B) $137,700
• C) $153,900
• D)$162,000

---

Definitions:

Prior Hypotheses

Preconceived theories or assumptions made before conducting an experiment or research study.

Systematic Observation

A methodical approach to data collection where researchers observe subjects in a structured manner to minimize bias.

Specific Behaviors

Refers to particular actions or reactions of individuals or groups that are observable and measurable.

Reactivity

A problem of measurement in which the measure changes the behavior being observed.