REE 4103 Unit 12
If level income is forecast and the Discount rate is greater than the overall rate (R0),
_____________ is expected: - ANS-Property appreciation
The present value of all expected investment benefits minus the present value of all
expected negative cash flows, is the: - ANS-Net Present Value
Which is not a yield rate? - ANS-interest rate
Which statement is true? - ANS-Financing the property may not be beneficial to the
owner in terms of yield on the equity investment
In discounted cash flow analysis, the reversion to be received at the end of the holding
period is: - ANS-An ordinary annuity
The annualized rate of return on the capital generated or expected to be generated by
an investment over the period of ownership is called the: - ANS-Internal rate of return
Current yield is: - ANS-Unchanging with time
The lump sum that an investor receives upon resale of an investment is called: -
ANS-Reversion
In yield capitalization, investor assumptions are: - ANS-simulated
To obtain the present value of a series of incomes, a(n) ______________ rate is
applied. - ANS-Discount
The internal rate of return (IRR) on equity investment cannot be applied to: -
ANS-Property that is 100% financed
A forecast using discounted cash flow analysis would include: - ANS-All of the above
Yield to maturity is: - ANS-Unchanging with time
If level income is forecast and the Discount rate is greater than the overall rate (R0),
_____________ is expected: - ANS-Property appreciation
The present value of all expected investment benefits minus the present value of all
expected negative cash flows, is the: - ANS-Net Present Value
Which is not a yield rate? - ANS-interest rate
Which statement is true? - ANS-Financing the property may not be beneficial to the
owner in terms of yield on the equity investment
In discounted cash flow analysis, the reversion to be received at the end of the holding
period is: - ANS-An ordinary annuity
The annualized rate of return on the capital generated or expected to be generated by
an investment over the period of ownership is called the: - ANS-Internal rate of return
Current yield is: - ANS-Unchanging with time
The lump sum that an investor receives upon resale of an investment is called: -
ANS-Reversion
In yield capitalization, investor assumptions are: - ANS-simulated
To obtain the present value of a series of incomes, a(n) ______________ rate is
applied. - ANS-Discount
The internal rate of return (IRR) on equity investment cannot be applied to: -
ANS-Property that is 100% financed
A forecast using discounted cash flow analysis would include: - ANS-All of the above
Yield to maturity is: - ANS-Unchanging with time
