Basic Appraisal Procedures 2020 CH 10 Exam Questions and Answers 100% Pass

Basic Appraisal Procedures 2020 CH 10 Exam
Questions and Answers 100% Pass


Discounted cash flow analysis is defined as: - ✔✔"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: - ✔✔"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 - ✔✔that there is a
direct relationship between rental income and value.

Sale

Sale Price

Monthly Rent

GRM

1

$ 98,500

$750

2



100% Pass Guarantee Emily Charlene All Rights Reserved © 2025 1

,$103,000

$800

3

$ 91,750

$725

4

$ 94,000

$700

5

$100,000

$775

6

$106,000

$800

7

$ 92,500

$725 - ✔✔Sale

Sale Price

Monthly Rent

GRM

1


100% Pass Guarantee Emily Charlene All Rights Reserved © 2025 2

, $ 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

6

$106,000


100% Pass Guarantee Emily Charlene All Rights Reserved © 2025 3