Given the Following Information, Calculate the Effective Gross Income Multiplier

question 24

Multiple Choice

Given the following information, calculate the effective gross income multiplier for the specific investment. Effective gross income: $49,500, First-year NOI: $18,750, Acquisition price: $520,000, Equity Investment: 20%.

• A) 0.036
• B) 0.095
• C) 10.5
• D) 27.7

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Definitions:

Cognitive Processes

Mental actions or operations that involve thinking, understanding, learning, and remembering.

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Chief Executive Officers who are the highest-ranking individuals in a company, responsible for major corporate decisions.

Competitive Strategy

An approach a business takes to differentiate itself from its competitors to gain a competitive advantage.

Behavioral Integration

The degree to which diverse groups or individuals within an organization share and combine their behaviors and information for collective benefit.