$1.$ Your potential gross income is $100,000$ and vacancy loss is $10,000.$ When you spend $40\%$ of your effective gross income to operating expenses and $5\%$ of your effective gross to capital expenditure. What is your Net Operating Income?

There is no additional income.

A$.49,500$

B$.90,000$

C$.36,000$

D$.4,500$

$2.$ Your first$-$year net operating income is $100,000.$ Going$-$in cap rate is $5\%$ while going$-$out cap rate is $8\%.$ What is the estimated market value as of today?

A$.2,000,000$

B$.1,250,000$

C$.5,000$

D$.8,000$