FIN 369 Exam 2 Cheat Sheet - -While the general concepts of...

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-While the general concepts of investment value and market value are very similar, there is an important distinction between the two. All are true except: -Investment value is based on the expectations of a typical, or average, investor -In discounted cash flow analysis, the industry standard for pro forma cash flow projections of investment properties: -typically 10 years -Which of the following terms refers to cash flows that represent the income after subtracting lender payments: -Levered cash flows -NPV is interpreted using the following decision or rule- purchase if the NPV is: -Greater than zero -Which of the following terms refers to the present value of the right to receive a lump sum payment of $1 at the end of a particular year, given a specified discount rate? -Present value factor -As the required internal rate (IRR) increases, the net present value will: -Decline -The IRR on investment is the discount rate that makes the NPV of the investment: -equal to zero -All of the following are limitations of the IRR method except:
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FIN 369 Exam 2 Cheat Sheet - -While the general concepts of...

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