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NEW QUESTION: 1
Section B (2 Mark)
Mr Dixit is considering purchasing an office building for Rs. 2,500,000. He expects the potential gross income (PGI) in the first year to be Rs. 450,000; vacancy and collection losses to be 9 percent of PGI; and operating expenses to be 42 percent of effective gross income (EGI). What is the (effective) gross income multiplier?
A. 6.45
B. 6.1
C. 6.3
D. 6.8
Answer: B