REE 4103 FINAL QUESTIONS & ANSWERS
When estimating the market value of an income-producing property, the appraiser will
not consider: - Answer -Income Taxes attributable
5. In income capitalization, value is measured as the present worth of the: - Answer -
net operating income + the reversion
6. Income capitalization techniques are not typically used in valuing: - Answer -
Properties that do not generate Income
7. The monthly rental being paid for a comparable rental property is called: - Answer -
contract rent
8. The procedure used to convert future benefits into present value is: - Answer -yield
Capitalization (discount cash flow model)
113. A forecast using discounted cash flow analysis would include: - Answer -all cash
flows, reversion, initial outlay, discount rate
117. The lump sum that an investor receives upon resale of an investment is called: -
Answer -reversion
118. To obtain the present value of a series of incomes, a(n) - Answer -discount rate is
applied.
119. Current yield is: - Answer -this years annual cash flow divided by market price
122. Which is not a yield rate? - Answer -Cap rate
124. Current yield is: - Answer -annual cash flow Divided BY market price
125. Yield to maturity is: - Answer -discount rate
134. If a particular buyer requires a recapture of the building portion of the price in 25
years, what is the indicated recapture rate for the building, assuming straightline
recapture? - Answer -1 divided by (how many years) = .04
135. The appraiser's final value estimate should be based on: - Answer -A weighing of
the reliability of the info analyzed in each of the three approaches to value
137. In preparing an appraisal report, your analysis concludes that one of the
approaches to value is not applicable to this particular case. You should: - Answer -
State that the approach is not applicable, explain reasons and support
When estimating the market value of an income-producing property, the appraiser will
not consider: - Answer -Income Taxes attributable
5. In income capitalization, value is measured as the present worth of the: - Answer -
net operating income + the reversion
6. Income capitalization techniques are not typically used in valuing: - Answer -
Properties that do not generate Income
7. The monthly rental being paid for a comparable rental property is called: - Answer -
contract rent
8. The procedure used to convert future benefits into present value is: - Answer -yield
Capitalization (discount cash flow model)
113. A forecast using discounted cash flow analysis would include: - Answer -all cash
flows, reversion, initial outlay, discount rate
117. The lump sum that an investor receives upon resale of an investment is called: -
Answer -reversion
118. To obtain the present value of a series of incomes, a(n) - Answer -discount rate is
applied.
119. Current yield is: - Answer -this years annual cash flow divided by market price
122. Which is not a yield rate? - Answer -Cap rate
124. Current yield is: - Answer -annual cash flow Divided BY market price
125. Yield to maturity is: - Answer -discount rate
134. If a particular buyer requires a recapture of the building portion of the price in 25
years, what is the indicated recapture rate for the building, assuming straightline
recapture? - Answer -1 divided by (how many years) = .04
135. The appraiser's final value estimate should be based on: - Answer -A weighing of
the reliability of the info analyzed in each of the three approaches to value
137. In preparing an appraisal report, your analysis concludes that one of the
approaches to value is not applicable to this particular case. You should: - Answer -
State that the approach is not applicable, explain reasons and support
