Ch.8-Test Problems - Chapter 8: Valuation Using the Income...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 8: Valuation Using the Income Approach – Test Problems Robb Page 11-Feb-2010 FIN 497: Real Estate Principles Professor Clements Answers are highlighted. 1. Which of the following expenses is not an operating expense? a) Utilities b) Reserve for replacements and other nonrecurring expenses c) Management d) Mortgage payment e) Advertising 2. An overall capitalization rate ( R 0 ) is divided into which type of income or cash flow to obtain an indicated market value? a) Net operating income ( NOI ) b) Effective Gross Income ( EGI ) c) Before-tax cash flow ( BTCF ) d) After-tax cash flow ( ATCF ) e) Potential gross income ( PGI ) 3. Which of the following types of properties probably would not be appropriate for income capitalization? a) Apartment building b) Shopping center c) Farm d) Warehouse e) Public school 4. Reserves for replacement and other nonrecurring expenses are allowances that reflect: a) The annual depreciation of the building. b)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/25/2010 for the course FIN 497 taught by Professor Clements during the Spring '10 term at University of Missouri-Kansas City .

Page1 / 3

Ch.8-Test Problems - Chapter 8: Valuation Using the Income...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online