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FIN 345 – Real EstateChapter 8 Assignment - AnswersQuestions are on pg. 210-212 in the textAnswer Test Problems: 1 – 10(pg. 210-211)1.Which of the following expenses is not an operating expense?2.An overall capitalization rate (Ro) is divided into which type of income or cash flow to obtain an indicated market value?3.Which of the following types of properties probably would not be appropriate for income capitalization?4.Estimated capital expenditures 5.An appraiser estimates that a property will produce NOI of $25,000 in perpetuity, yo is 11 percent, and the constant annual growth rate in NOI is 2.0 percent. What is the estimated property value?6.If a comparable property sells for $1,200,000 and the effective gross income of the property is $12,000 per month, the effective gross income multiplier (EGIM) is7.Which of the following statements regarding capitalization rates on commercial real estate investments is the most correct? 8.The methodology of appraisal differs from that of investment analysis primarily regarding