Use the following information to answer the next five questions:

Consider a property with the following pro forma operating statement:

PGI $1,200,000

- V&C 60,000

EGI 1,140,000

- OE 456,000

NOI 684,000

The property can be purchased for $8.55 million. Financing is available for 75 percent of the purchase price with annual debt service payments of $519,572.

What is the property's operating expense ratio?

A. 40.0%

B. 38.0%

C. 57.0%

D. 5.0%

What is this property's cash-on-cash-return?

	A.	1.92%
	B.	8.00%
	C.	12.50%
	D.	7.69%