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Exam (elaborations)

Bomi (Chapters 1-2); Questions And Answers 100% Solved

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Bomi (Chapters 1-2); Questions And Answers 100% Solved List the seven valuation criteria specific to real property Correct answerlocation and construction, production of growth capital, production of income, durability, response to change, enhancement of activities within a building, produc...

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  • August 24, 2024
  • 8
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • BOMI
  • BOMI
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TheeGrades
Bomi (Chapters 1-2); Questions And Answers
100% Solved
List the seven valuation criteria specific to real property Correct answer-

location and construction, production of growth capital, production of income,

durability, response to change, enhancement of activities within a building,

productivity




What is the difference between a capital investment and income? Correct

answer-Capital investment: is where monies are invested to produce or increase

asset value. (not recognized until an asset is sold)




Income: is generated from the rental of a building that is reflected on an income

statement during the period it was earned.




Define churn rate. Correct answer-the percentage of a space inventory

that is reconfigured in some way (walls, furniture, finishes, utilities) in a year.

, Bomi (Chapters 1-2); Questions And Answers
100% Solved
What is the overall goal of the property manager? Correct answer-Their

goal is to keep the building full of tenants and running efficiently, maximizing

net income for the owner while minimizing risks.




Define investment ROI (return on investment) and capital ROI. Correct

answer-Investment ROI: is the return on the investment while it is being held




Capital ROI: is the return on the investment when they are done with it.




What are the four standard financial evaluation techniques typically applied to

investment/production decisions? Correct answer-break-even (cost

benefit) analysis, payback analysis, net present value analysis, internal rate of

return

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