ARGUS Practice Exam Questions
with Correct Answers
The Expense Inflation Rates will be the default percentage for:
Operating Expenses
Non-Operating Expenses
Capital Expenses
All the above - Answer-All the above
Every inflation category must be given a number, or it will default to the General Inflation
Rate - Answer-False
Assuming 60% occupancy calculate the Vending Machine Revenue in Year 1
- Inflation: 3.5%
- Building size 60,000 sf
- Amount = $13,000 annually
- 0% fixed - Answer-$7.800
(.60 * 13,000)
Assuming 0% occupancy, calculate the Vending machine revenue in Year 1 of the
analysis - Answer-$0
Assuming 100% occupancy, calculate the Vending Machine revenue in Year 1 of the
analysis - Answer-$13,000
What is the Capital Expense amount that will appear on the Cash Flow?
$60,000 growing at 3% for the first 2 years - Answer-$63,654
When using an Available date that is before the Start Date, the loss in potential rent
(Base Rental Revenue) can be shown on which report? - Answer-Lease Audit
_____ is used in retail properties where tenants are expected to pay a percentage of
their sales to the property owner - Answer-Percentage rent
Calculate the general vacancy loss using the following assumptions:
- Potential Gross Revenue: $800,000
- Absorption & Turnover Vacancy: $20,000
- Calculation: 5% of Potential Gross Revenue - Answer-$21,000
Additional principal payments can be factored into the loan compensations - Answer-
True
,While running a 7-year analysis on a property with a 30-year debt note in AE , the note
will ___ at the end of the projection. - Answer-balloon
After changing the modeling policy for Gross Ups, any Recovery structure already
created will default to the Gross Up percent in the Modeling Policies window - Answer-
False
The default formula for leasing commissions is - Answer-base rent + step rent - free rent
To indicate that an expense should not be included in the cash flow projections nor
used in the calculation of the NOI, select - Answer-Reference Only
Free Rent, by default, kicks in at the beginning of the - Answer-Tenant's lease start date
The default recovery structure in AE is - Answer-Net
The Available Date column in the Tenants - Rent Roll represents the start of the tenant's
lease - Answer-False
** This is the start date
By default, Tenant Improvements and Leasing Commissions are paid at the start of the
tenant's lease - Answer-True
The Upon Expiration field within the Market Leasing Profile allows users to select a
different Market Leasing profile to be used after the first Market Leasing term is over -
Answer-True
Contract Renewal: - Answer-Inserts a new contract lease into the rent roll
The inflation rates are displayed on which report? - Answer-Property Summary
Which report displays New Market, Renewal Market and Weighted Average Results? -
Answer-Assumptions Report
When your resale calculation is set to CAP NOI (12 months after sale), which year's
NOI will be used when analyzing a 6-year analysis? - Answer-7th
If 12% is a desired return, enter 12% in the _____ parent tab. - Answer-valuation
- LB Corporation signed a 3-year lease with a commencement date of January 2016.
- LB Corporation will occupy 100% of the property
- LB Corporation will reimburse expenses according to a Base Year Stop Structure
What will LB Corporation pay for reimbursements in 2016? - Answer-$0
Base Year is 2016
, What will LB Corporation pay for reimbursements in 2017? - Answer-Total OPEX 2017 -
Total OPEX 2016
507,252 - 474,240
33, 012
How many properties can be created/imported within many portfolios? - Answer-over
thousands
Best Fit (All columns) - Answer-automatically adjusts the column width to display all
content
- Off (default) deactivates best fit for all columns
Analysis Begin defaults... - Answer-to the current month and year
Analysis length can be between - Answer-1 to 100 years
Which section in the Navigation Pane allows users to update a variety of different
settings ranging from Managing Users to Data Import Validation Rules to Report
Settings? - Answer-Control Panel
Which of the Portfolio Application Tabs is best described by the following statement?
This application allows users to create and view analytical charts and graphs based on
a combination of properties from the portfolio - Answer-Analysis
Modeling Policies - Answer-Will allow a user to view and change the options used for
data entry and calculations in this property model, allows you to control defaults
General Inflation Rate - Answer-Hits misc. revenue
Market Inflation Rate - Answer-hits rent
Expense Inflation Rate - Answer-hits all expenses
Inflation Ellipsis - Answer-Detail Inflation monthly
To apply inflation to the first year of the analysis select Allow Inflation in Year One
option in the Modeling Policies
Reimbursable Expenses - Answer-expenses that the property owner will recover from
the tenants
Common Reimbursable Expenses include CAM, taxes, insurance, repairs
Non-Operating Expenses - Answer-fall below the net operating income line on the Cash
Flow
Will not be counted towards the value of the property
with Correct Answers
The Expense Inflation Rates will be the default percentage for:
Operating Expenses
Non-Operating Expenses
Capital Expenses
All the above - Answer-All the above
Every inflation category must be given a number, or it will default to the General Inflation
Rate - Answer-False
Assuming 60% occupancy calculate the Vending Machine Revenue in Year 1
- Inflation: 3.5%
- Building size 60,000 sf
- Amount = $13,000 annually
- 0% fixed - Answer-$7.800
(.60 * 13,000)
Assuming 0% occupancy, calculate the Vending machine revenue in Year 1 of the
analysis - Answer-$0
Assuming 100% occupancy, calculate the Vending Machine revenue in Year 1 of the
analysis - Answer-$13,000
What is the Capital Expense amount that will appear on the Cash Flow?
$60,000 growing at 3% for the first 2 years - Answer-$63,654
When using an Available date that is before the Start Date, the loss in potential rent
(Base Rental Revenue) can be shown on which report? - Answer-Lease Audit
_____ is used in retail properties where tenants are expected to pay a percentage of
their sales to the property owner - Answer-Percentage rent
Calculate the general vacancy loss using the following assumptions:
- Potential Gross Revenue: $800,000
- Absorption & Turnover Vacancy: $20,000
- Calculation: 5% of Potential Gross Revenue - Answer-$21,000
Additional principal payments can be factored into the loan compensations - Answer-
True
,While running a 7-year analysis on a property with a 30-year debt note in AE , the note
will ___ at the end of the projection. - Answer-balloon
After changing the modeling policy for Gross Ups, any Recovery structure already
created will default to the Gross Up percent in the Modeling Policies window - Answer-
False
The default formula for leasing commissions is - Answer-base rent + step rent - free rent
To indicate that an expense should not be included in the cash flow projections nor
used in the calculation of the NOI, select - Answer-Reference Only
Free Rent, by default, kicks in at the beginning of the - Answer-Tenant's lease start date
The default recovery structure in AE is - Answer-Net
The Available Date column in the Tenants - Rent Roll represents the start of the tenant's
lease - Answer-False
** This is the start date
By default, Tenant Improvements and Leasing Commissions are paid at the start of the
tenant's lease - Answer-True
The Upon Expiration field within the Market Leasing Profile allows users to select a
different Market Leasing profile to be used after the first Market Leasing term is over -
Answer-True
Contract Renewal: - Answer-Inserts a new contract lease into the rent roll
The inflation rates are displayed on which report? - Answer-Property Summary
Which report displays New Market, Renewal Market and Weighted Average Results? -
Answer-Assumptions Report
When your resale calculation is set to CAP NOI (12 months after sale), which year's
NOI will be used when analyzing a 6-year analysis? - Answer-7th
If 12% is a desired return, enter 12% in the _____ parent tab. - Answer-valuation
- LB Corporation signed a 3-year lease with a commencement date of January 2016.
- LB Corporation will occupy 100% of the property
- LB Corporation will reimburse expenses according to a Base Year Stop Structure
What will LB Corporation pay for reimbursements in 2016? - Answer-$0
Base Year is 2016
, What will LB Corporation pay for reimbursements in 2017? - Answer-Total OPEX 2017 -
Total OPEX 2016
507,252 - 474,240
33, 012
How many properties can be created/imported within many portfolios? - Answer-over
thousands
Best Fit (All columns) - Answer-automatically adjusts the column width to display all
content
- Off (default) deactivates best fit for all columns
Analysis Begin defaults... - Answer-to the current month and year
Analysis length can be between - Answer-1 to 100 years
Which section in the Navigation Pane allows users to update a variety of different
settings ranging from Managing Users to Data Import Validation Rules to Report
Settings? - Answer-Control Panel
Which of the Portfolio Application Tabs is best described by the following statement?
This application allows users to create and view analytical charts and graphs based on
a combination of properties from the portfolio - Answer-Analysis
Modeling Policies - Answer-Will allow a user to view and change the options used for
data entry and calculations in this property model, allows you to control defaults
General Inflation Rate - Answer-Hits misc. revenue
Market Inflation Rate - Answer-hits rent
Expense Inflation Rate - Answer-hits all expenses
Inflation Ellipsis - Answer-Detail Inflation monthly
To apply inflation to the first year of the analysis select Allow Inflation in Year One
option in the Modeling Policies
Reimbursable Expenses - Answer-expenses that the property owner will recover from
the tenants
Common Reimbursable Expenses include CAM, taxes, insurance, repairs
Non-Operating Expenses - Answer-fall below the net operating income line on the Cash
Flow
Will not be counted towards the value of the property
