1. Which of the following descriptions of net operating income (NOI) is correct?

	a.	Net operating income is a pretax free cash flow concept.
	b.	NOI is used when applying the comparative sales approach.
	c.	NOI is a measure of the cost to construct the existing property
	d.	NOI is a measure of the cost to sell the existing property

2. The difference between an equity real estate investment trust (REIT) and a mortgage REIT is an equity REIT:

		Pays cash for its properties, while a mortgage REIT uses mortgage financing to acquire its properties.
		Is not subject to double taxation because it invests in real estate equity, while a mortgage REIT is subject to double taxation because it does not invest in real estate equity.
		Invests in equity interests in real estate properties, while a mortgage REIT invests in mortgages that are used to finance the purchase of real estateproperties.
		Invests in debt interests in real estate propertiess, while a mortgage REIT invests in equity investments that are used to finance the purchase of real estateproperties.