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:
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
This is the end of the preview.
Sign up
to
access the rest of the document.
 Spring '11
 Nelson
 Net Present Value, following terms, which, effective tax rate

Click to edit the document details