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You are considering the purchase of an apartment complex. The following assumptions are made: Potential gross income (PGI) for the first year of operations is

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You are considering the purchase of an apartment complex. The following assumptions are made: Potential gross income (PGI) for the first year of operations is projected to be $200,000 The vacancy rate is 10 percent Operating expenses are estimated at 40 percent of effective gross income. Ignore capital expenditures. Calculate net operating income (NOI) for the first year

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