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CCIM 101 FINANCIAL ANALYSIS FOR COMMERCIAL
INVESTMENT REAL ESTATE EXAM QUESTIONS
WITH VERIFIED SOLUTIONS 2026
Question 1
An investor can purchase a small retail building for $1,200,000 today. She
forecasts selling it in 5 years for $1,500,000. No interim cash flows occur. What is
the annualized IRR on this investment?
A. 3.78%
B. 4.56%
C. 5.00%
D. 6.25%
Correct Answer: B
Rationale: PV = -1,200,000, FV = 1,500,000, N = 5, PMT = 0, solve for I/YR = 4.56%.
Distractor A (3.78%) results from using N = 6 incorrectly. Distractor C (5.00%) is
the simple average ignoring compounding. Distractor D (6.25%) results from
dividing FV by PV (1.5M/1.2M = 1.25) ignoring time periods.
Question 2
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A developer needs $500,000 in 8 years to fund a future acquisition. If she can earn
7% compounded annually, how much must she invest today?
A. $291,243
B. $312,489
C. $350,000
D. $400,000
Correct Answer: A
Rationale: FV = 500,000, N = 8, I/YR = 7, PMT = 0, solve for PV = -291,243.
Distractor B (312,489) results from using I/YR = 6% instead of 7%. Distractor C
(350,000) is a rough linear estimate ignoring compounding.
Question 3
An office building generates $18,000 per month in net operating income for the
next 10 years. If the investor's required return is 8% annually, what is the present
value of this ordinary annuity?
A. $1,487,623
B. $1,524,891
C. $1,620,000
D. $1,800,000
CCIM 101 FINANCIAL ANALYSIS FOR COMMERCIAL
INVESTMENT REAL ESTATE EXAM QUESTIONS
WITH VERIFIED SOLUTIONS 2026
Question 1
An investor can purchase a small retail building for $1,200,000 today. She
forecasts selling it in 5 years for $1,500,000. No interim cash flows occur. What is
the annualized IRR on this investment?
A. 3.78%
B. 4.56%
C. 5.00%
D. 6.25%
Correct Answer: B
Rationale: PV = -1,200,000, FV = 1,500,000, N = 5, PMT = 0, solve for I/YR = 4.56%.
Distractor A (3.78%) results from using N = 6 incorrectly. Distractor C (5.00%) is
the simple average ignoring compounding. Distractor D (6.25%) results from
dividing FV by PV (1.5M/1.2M = 1.25) ignoring time periods.
Question 2
, 2|Page
A developer needs $500,000 in 8 years to fund a future acquisition. If she can earn
7% compounded annually, how much must she invest today?
A. $291,243
B. $312,489
C. $350,000
D. $400,000
Correct Answer: A
Rationale: FV = 500,000, N = 8, I/YR = 7, PMT = 0, solve for PV = -291,243.
Distractor B (312,489) results from using I/YR = 6% instead of 7%. Distractor C
(350,000) is a rough linear estimate ignoring compounding.
Question 3
An office building generates $18,000 per month in net operating income for the
next 10 years. If the investor's required return is 8% annually, what is the present
value of this ordinary annuity?
A. $1,487,623
B. $1,524,891
C. $1,620,000
D. $1,800,000
