The difference between the net operating income (NOI) and the equity before-tax cash flow (EBTCF) is:
A) Property Tax Expense and capital expenditures.
B) The debt service and capital expenditures.
C) Property taxes and income taxes.
D) Interest expense and depreciation expense.

Question

Quizplus · Accepted Answer

The difference between the net operating income (NOI) and the equity before-tax cash flow (EBTCF) is the debt service and capital expenditures. NOI does not account for financing or capital expenses, while EBTCF subtracts these costs to show the cash flow available to equity investors.

The Difference Between the Net Operating Income (NOI) and the Equity