Real Estate Financial Modeling Question and answers correctly solved

Real Estate Financial Modeling Question and answers correctly solved why does real estate trade with positive pricing - correct answer due to real estates ability to attract cash flows, the value of real estate is not the physical structure itself, but rather the net rents (leases) the structure attracts or has the ability to attract generalized risk structures in real estate - correct answer 1. Single Assets (MF, Office, retail, hotel) single asset with single tenant single asset with multiple tenants 2. Multi-asset (marginal contribution to portfolio 3. Derivative product of FRA Net Income formula - correct answer Revenues - Expenses = NOI NOI-Debt Expense= NET INCOME NPV - correct answer the sum of present values for all future cash flows discounted at the appropriate market rate an investment is worth pursuing when the NPV is positive the major strength is the simplicity to calculate, the major weakness is the application of risk to each period NPV timing example - correct answer 1 CF0 -100; CF1 80; CF2 20; CF3; 20 == NPV 105.67 2