REAL 4000 UGA -Test 2 Latest Updated 2024/2025 Actual Questions and Answers Fully Solved 100% Guaranteed Success.(Graded A+)
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Course
REAL 4000 UGA
Institution
REAL 4000 UGA
all else equal, a higher discount rate will... - DECREASE the PV of future cash flows
the feasibility of new construction is dependent on the relationship btwn current property prices + cost
of new construction.
the supply of properties will increase if... - the current property values are great...
all else equal, a higher discount rate will... - DECREASE the PV of future cash flows
the feasibility of new construction is dependent on the relationship btwn current property prices + cost
of new construction.
the supply of properties will increase if... - the current property values are greater than the cost of
construction
(all about profit @ the end of the day)
what is the direct capitalization method anyway? - it's when the value estimates are based on a
multiple of expected first year net operating income (NOI)
what is a capital expenditure (capx)? - an expense that will add long-term value to the home (ex: a
roof replacement)
basic direct cap equation? - projected first year NOI / overall cap rate
when do you use PMT? - when there are monthly payments involved (called an annuity)
how are cap rates for commercial properties related to risk? - cap rates are directly related to the
perceived risk of the property.
EGIM method of valuation - sale price / effective gross income (make sure to calculate EGI for the
right time frame ex: annual, monthly, etc)
cost approach of valuation - reproduction/replacement cost + any additional value - depreciation
= indicated value
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