QUESTIONS 109 THROUGH 114 RELATE TO ALTERNATIVE INVESTMENTS.

111. An investor evaluates an apartment complex using the income approach. Recent

sales in the area consist of an apartment complex and an office building. The data

on the apartment complex and the recently sold properties are provided below. All

income and expenses are annual.

Gross potential rental

$288,000

income

Estimated vacancy and

collection losses 5%

Insurances and taxes $25,000

Utilities $16,000

Repairs and

$26,000

maintenance

Depreciation $32,000

$27,000

Interest on proposed

financing

The NOI of the apartment complex under consideration is closest to:

A. $147,600.

B. $174,600.

C. $206,600.

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