REFM Module 2 Question Bank Question and answers verified to pass 2024/2025
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REFM
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REFM
REFM Module 2 Question Bank Question and answers verified to pass 2024/2025 REFM Module 2 Question Bank
In a discounted cash flow analysis, property value is evaluated using: - correct answer Pre-tax Cash Flows
T/F: You should always choose the project that generates the highest NPV? - c...
REFM Module 2 Question Bank
In a discounted cash flow analysis, property value is evaluated using: - correct
answer ✔Pre-tax Cash Flows
T/F: You should always choose the project that generates the highest NPV? -
correct answer ✔False. NPV Other factors to consider: expertise in market,
does it fit investment strategy, what could go wrong, etc.
What tells you how much net value the investment is expected to create? -
correct answer ✔Net Present Value
What is the formula for calculating the present value with a 3-year timeline? -
correct answer ✔CF/((1+r)*(1+r)*(1+r))
When calculating the present value, the time unit can be: (Select all that
apply) - correct answer ✔Daily/Weekly/Monthly/Quarterly
Reversion Value is also known as: - correct answer ✔Terminal Value
T/F: When considering a development project, the development cash outflows
are fairly certain to occur, while the operating cash inflows are relatively
uncertain. - correct answer ✔True
What is another name for the discount rate in a discounted cash flow
analysis? - correct answer ✔The required annual return
T/F: When solving for a future value with a timeline greater than one year, the
investment earns a compound return. - correct answer ✔True
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