PRINCIPLES OF VALUATION REVISION.docx - PRINCIPLES OF...

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PRINCIPLES OF VALUATION REVISION 1.) Which of the following gives an investor the true rate of return/cost of borrowing? a.) Annual effective rate b.) Nominal rate c.) Initial yield
2.) Which of the following Microsoft Excel Formulae should be used to calculate the amount $1 pa?
3.) Consider two virtually identical adjoining properties. One was let last year at $20,000 per annum net. The market rent has since increased by 10%. The current market yield is 5%. The second property is now vacant and for sale, The estimated market value of it should be:
4.) A nominal rate is an interest rate that takes compounding into consideration
5.) Which of the following gives an investor the true rate of return/cost of borrowing? a.) Annual effective rate b.) Nominal rate c.) Initial yield
6.) The word “Improvements” in a valuation report means:
7.) Your client is entitled to take over a freehold property after 5 years. The full market rent of the property is estimated to be $80,000 net and yield of similar property is 8%. Opportunity cost rate is 5%. What is the value of the interest?

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