IAAO Course 102 (SOLVED!)

Income Approach correct answers Approach to value in which the appraiser analyzes a property's ability to earn future income Investor Asks These Questions to Analyze Investments correct answers 1. How much will it cost 2. How much will I get back 3. When will I get it back 4. What are the risks 5. What is the return on investment Return on Investment correct answers The profit or interest earned on an investment. AKA Overall yeild (Yo) or Discount Rate Recapture Rate correct answers Getting back the amount invested. AKA return OF investment. Principle of Anticipation correct answers Affirms that value is created by anticipated benefits to be derived in the future. Principle of Substitution correct answers The maximum value of a property tends to be set by the cost of purchasing an equally desirable substitute property. 9 Factors Influencing Investor Decisions correct answers 1. Time 2. Safety 3. Liquidity 4. Income tax benefits 5. Appreciation 6. Management 7. Size 8. Collateral