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

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. $$\begin{array} { | c | c | } \hline \text { Subject Prqperty } & \\\hline \text { Nurber of apartrments } & 15 \\\hline \text { Market Rent (permonth) } & 1000 \\\hline \text { Vacarcy ard Collecticn Losses } & 10 \% \text { of PGI } \\\hline \text { Operating Expenses } & 5 \% \text { of EGI } \\\hline \text { Capital Expenditures } & 10 \% \text { of EGI } \\\hline\end{array}$$

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

Correct Answer:

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