Exam One Review Sheet
Appraisal- an impartial estimate of value based on market evidence; narrower terms then valuation.
Generally it will provide an independent, third party estimate of value under a proscribed set of
1. What is the present value of an offer of $700,000 five years from now if the opportunity
cost of capital is 13% compounded annually?
2. What is the effective annual rate of 9% nominal annual rate comp