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Determine the annual Net Operating Income (NOI) and the cash flow before taxes using the assumptions and facts for the following real estate investment:
a) 40 Units
b) Rent per unit is $1,500 per month
c) Vacancy and debt losses are 5% of gross potential income
d) Operating Expenses are $426,000 per year
e) Debt service is 106,000, which includes $90,000 in interest
f) Depreciation expense is $46,000 per annum.