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Basic Appraisal Procedures CH 10 Exam
Questions And Answers |Latest 2025 |
Guaranteed Pass.
Discounted cash flow analysis is defined as: - Answer✔"The procedure in which a discount rate
is applied to a set of projected income streams and a reversion. The analyst specifies the
quantity, variability, timing, and duration of the income streams as well as the quantity and
timing of the reversion and discounts each to its present value at a specified yield rate."
A gross rent multiplier (GRM) is defined as: - Answer✔"The relationship or ratio between the
sale price or value of a property and its periodic gross rental income."
Gross rent multiplier (GRM) analysis is based on the assumption - Answer✔that there is a direct
relationship between rental income and value.
Sale
Sale Price
Monthly Rent
GRM
1
$ 98,500
$750
2
$103,000
$800
3
$ 91,750
$725
4
1|Page
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$ 94,000
$700
5
$100,000
$775
6
$106,000
$800
7
$ 92,500
$725 - Answer✔Sale
Sale Price
Monthly Rent
GRM
1
$ 98,500
$750
131.3
2
$103,000
$800
128.8
3
$ 91,750
$725
126.6
4
$ 94,000
$700
134.3
5
$100,000
$775
129.0
2|Page
Basic Appraisal Procedures CH 10 Exam
Questions And Answers |Latest 2025 |
Guaranteed Pass.
Discounted cash flow analysis is defined as: - Answer✔"The procedure in which a discount rate
is applied to a set of projected income streams and a reversion. The analyst specifies the
quantity, variability, timing, and duration of the income streams as well as the quantity and
timing of the reversion and discounts each to its present value at a specified yield rate."
A gross rent multiplier (GRM) is defined as: - Answer✔"The relationship or ratio between the
sale price or value of a property and its periodic gross rental income."
Gross rent multiplier (GRM) analysis is based on the assumption - Answer✔that there is a direct
relationship between rental income and value.
Sale
Sale Price
Monthly Rent
GRM
1
$ 98,500
$750
2
$103,000
$800
3
$ 91,750
$725
4
1|Page
, ©THESTAR 2025 ALL RIGHTS RESERVED 11:44 AM A+
$ 94,000
$700
5
$100,000
$775
6
$106,000
$800
7
$ 92,500
$725 - Answer✔Sale
Sale Price
Monthly Rent
GRM
1
$ 98,500
$750
131.3
2
$103,000
$800
128.8
3
$ 91,750
$725
126.6
4
$ 94,000
$700
134.3
5
$100,000
$775
129.0
2|Page
