CCIM 101 MODULE 3. Questions and Correct Answers

CCIM 101 MODULE 3
EXPLAIN THE CASH FLOW MODEL - ANSWER 1. INITIAL INVESTMENT

2. CASH FLOW OPERATION DURING THE HOLDING PERIOD (RENTAL PAYMENTS)

3. CASH FLOW FROM DISPOSITION OF SALES PROCEED

4. HOLDING PERIOD (INTEREST) EARN ON INVESTMENT



WHAT FOUR BASIC QUESTION DO THE CASH FLOW MODEL ADDRESS - ANSWER 1. HOW MANY
DOLLAR GO INTO THE INVESTMENT

2. WHEN DO THE DOLLAR GO INTO THE INVESTMENT

3. HOW MANY DOLLARS COME OUT OF THE INVESTMENT

4. WHEN DO THE DOLLARS COME OUT OF THE INVESTMENT



TMV TIME VALUE OF MONEY PRINCPLE - ANSWER 1. WHAT WILL A N INVESTMENT MADE
TODAY BE WORTH IN THE FUTURE (COMPOUNDING)

2. WHAT IS PAYMENT RECEIVED TODAY WORTH IN THE FUTURE (DISCOUNTING)



WHAT IS DISCOUNTING - ANSWER THE PROCESS OF DETERMINING THE PRESENT VALUE



WHAT IS COMPOUNDING - ANSWER THE PROCESS OF DETERMINING FUTURE VALUE



ANNUITY - ANSWER A SERIES OF EQUAL PAYMENTS OVER A SPECIFIC PERIOD. EXAMPLES RENT
OR LEASE PAYMENTS, RECURRING DEPOSIT TO AN INTEREST-BEARING ACCOUNT



WHAT IS A SINKING FUND - ANSWER A STREAM OF EQUAL PAYMENTS THAT IS SET ASIDE TO
REACH A FUTURE TARGET AMOUNT EXAMPLE COLLEGE FUND, RETIREMENT ACCOUNT ETC..