Investment Decisions: NPV and IRR
1. A real estate investment is available at an initial cash outlay of $10,000, and is
expected to yield cash flows of $3,343.81 per year for five years. The internal
rate of return (IRR) is appro
INCOME TAXATION AND VALUE
1. Taxable income from the rental of actively managed depreciable real estate is
b. Passive income.
2. Under current federal income tax law, what is the shortest cost recovery period
Real Estate Finance: The Laws and Contracts
1. The element of an adjustable interest rate that is the moving part is the:
2. Which of these aspects of a mortgage loan will be addressed in the note rather
than in the mortga
Valuation Using the Income Approach
1. Which of the following expenses is not an operating expense?
d. Mortgage payment.
2. An overall capitalization rate (Ro) is divided into which type of income or cash flow
to obtain an indicate
Valuation Using the Sale Comparison and Cost Approaches
1. The final price for each comparable property reached after all adjustments have
been made is termed the:
b. Final adjusted sale price.
2. Which of the following is not incl
Forecasting Ownership Benefit and Value: Market Research
1. Factors that affect housing market segmentation include all except:
d. Household unemployment status.
2. The process of creating a market-defining story includes all of th
Market Determinants of Value
The gravity that draws economic activity into clusters is:
c. Demand for access or proximity.
Spatial or distance relationships that are important to a land use are called its:
Conveying Real Property Interests
1. Which of these is not a requirement of a valid deed?
b. Competent grantee.
2. The interest being conveyed by a deed is specified in the:
b. Habendum clause
3. The highest quality form of deed i
Legal Foundations to Value
1. Which of the following is not a form of property right?
2. Which of these easements is most likely to be an easement in gross?
d. Power line easement
3. Rules used by courts to determine whe
THE NATURE OF REAL ESTATE AND REAL ESTATE MARKETS
1. A market where tenants negotiate rent and other terms with property owners or their
managers is referred to as a:
b. User market
2. The market in which required rates of return o