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Q 1/51
Score 0
When setting up a T-bar showing the financial components of an investment, which component reflects income received when the investment is sold?
120
Positive periodic cash flows
Sales proceeds
Initial investment amount
Negative periodic cash flows
Q 2/51
Score 0
Suppose an investor deposits $45,000 into an investment earning 5 percent annual interest, how much will the investment be worth at the end of three years, assuming annual compounding?
300
$52,233.95
$52,266.25
$52,093.13
$52,282.00
51 questions
Q.
When setting up a T-bar showing the financial components of an investment, which component reflects income received when the investment is sold?
1
120 sec
Q.
Suppose an investor deposits $45,000 into an investment earning 5 percent annual interest, how much will the investment be worth at the end of three years, assuming annual compounding?
2
300 sec
Q.
If $2,000 is invested at the end of each year for the next five years, earning 10 percent annual interest, how much money will be in the account at the end of the fifth year, assuming annual compounding?
3
300 sec
Q.
If $7,500 is invested at the end of each year for the next seven years, earning 10 percent annual interest, how much money will be in the account at the end of the seventh year, assuming annual compounding?
4
300 sec
Q.
Which investor preference is illustrated in the following T-bars?
5
120 sec
Q.
If you own an investment that is compounded annually at a given interest rate and plan on selling it at the end of five years, what would happen to the future value (FV) of the investment if the compounding periods changed to monthly?
6
120 sec
Q.
How much must be deposited per period to accumulate to $100,000 over 10 years earning 12 percent if the deposits are made monthly?
7
300 sec
Q.
Which of the following statements accurately describes what a negative NPV indicates?
8
120 sec
Q.
Which of the following terms are synonymous with internal rate of return?
9
120 sec
Q.
Consider the following information about a six-unit apartment building:
Each unit has a market rent of $750 per month
Common area maintenance costs are $250 per month
Vacancy and credit losses are currently at 6 percent for similar properties
What is the building's estimated annual vacancy and credit loss?
10
300 sec
Q.
For the month of June, the following disbursements were made for a property:
$250 for building repairs
$400 for aside to repave the parking lot five years from now
$265 utility bill
What are the June operating expenses for this property?
11
300 sec
Q.
If a property owner receives income from a billboard located on the owner's mini-storage facility, under what category is this income classified?
12
120 sec
Q.
Which of the following is not a component of a generic cash flow model?
13
120 sec
Q.
Which of the following questions require an answer in order to calculate a yield for an investment or make a valid comparison between investment alternatives?
14
120 sec
Q.
Which of the following statements best describes the relationship between capitalization rate and yield?
15
120 sec
Q.
What adjustment must be made to purchase price when the NPV is negative in order to achieve a target yield?
16
120 sec
Q.
What is the loan balance at end of year five for a $250,000 loan at 11 percent interest, 25-year amortization, and monthly payments?
17
300 sec
Q.
What is the lenders yield on a $225,000 loan at 11 percent with monthly payments over 25 years if four points are charged at origination and the loan is fully amortized?
18
300 sec
Q.
Mr. Jones has agreed to purchase a property for $350,000 under the following terms: 80 percent loan-to-value ratio, 9 percent annual interest, and a 20-year loan term with monthly payments. What would be Mr. Jones outstanding loan balance at end of year three?
19
300 sec
Q.
The Johnsons own an apartment building with a forecast net operating income of $80,000 for next year. A lender will make a loan on the apartment property based on a 1.25 debt-coverage ratio, 10 percent interest, and a 20-year amortization with monthly payments. What is the loan amount?
20
300 sec
Q.
A 25-year mortgage loan of $150,000, with monthly payments, has an annual debt service of $13,737.84. The annual interest rate on this loan is?
21
300 sec
Q.
What is the periodic payment for a $100,000 mortgage with monthly payments at 10.5 percent and a $10,000 balloon payment due at the end of year 20?
22
300 sec
Q.
The amount required in one year for payment of interest and principal on a loan is called:
23
120 sec
Q.
Which of the following is a one-year measurement rather than measuring the entire holding period?
24
120 sec
Q.
if Mr. A purchases an industrial building for $9,500,000 with a $7,500,000 mortgage and the potential rental income is $900,000 a year, the NOI is $640,000 and the ADS is $480,000. What would be his first year cash-on-cash?
25
300 sec
Q.
If the before-tax IRR is 9% and the after-tax IRR is 7% then the effective tax rate is?
26
300 sec
Q.
Taxable income for an improved property with financing is determined by:
27
120 sec
Q.
For tax purposes the loan costs are written off over what period?
28
120 sec
Q.
The limitations of internal rate of return include:
29
120 sec
Q.
A pension fund investor purchased an office building for $560,000 five years ago. The cash flow from the investment are summarized in the T-bar below. At the end of their holding period, the pension fund sold the building for $625,000. What has been the growth in capital of the investment assuming an all-cash purchase? Assume that cash flows were reinvested at 6.5 percent.
30
300 sec
Q.
A discount rate obtained using the build-up method is calculated by:
31
120 sec
Q.
Which of the following statements best describes effective tax rate?
32
120 sec
Q.
Which of the following measures of investment performance is calculated on a one year basis?
33
120 sec
Q.
The ease in which an asset can be converted to cash quickly as long as the buyer and seller can agree on price is a description of which risk factor?
34
120 sec
Q.
Ed Jackson is considering the purchase of a retail strip center located at Main and Central in his hometown. His required return on equity for this purchase is 10 percent. This requirement will affect:
35
120 sec
Q.
The goal of investing is to return income to the investor above the investment cost. What forms can this income take?
36
120 sec
Q.
For an investor, the decision to sell a property or not is considered what type of decision?
37
120 sec
Q.
Rents are determined by which of the following?
38
120 sec
Q.
Who are the largest investors in the equity market?
39
120 sec
Q.
How does risk and return for real estate as an asset class compare to stocks and bonds?
40
120 sec
Q.
The primary advantage psychographic profiles have over other data used to describe a population is that
41
120 sec
Q.
Which of the following is not a major component of the CCIM Strategic Analysis Model?
42
120 sec
Q.
Which of the following groups can benefit using the CCIM Strategic Analysis Model?
43
120 sec
Q.
How can geospatial technology assist real estate practitioners?
44
120 sec
Q.
Which component of the CCIM strategic analysis process must always be the starting point for any feasibility analysis?
45
120 sec
Q.
The amount required in one year for payment of interest and principal on a loan is known as:
46
120 sec
Q.
Tax liability on sale of a property is:
47
120 sec
Q.
You bought a property for $200,000. The appraised value for the property is $250,000, of which $50,000 is for land and $200,000 is for improvements. The allocation for this property would be:
48
300 sec
Q.
An apartment property has a mortgage of $250,000 and required a down payment of $35,000. The appraised value for the property was $175,000, of which $52,500 is for land and $122,500 is for improvements. It is assumed that the property was purchased on the first day of the tax year. What is the available capital cost allowance for the year of acquisition?
49
300 sec
Q.
Mr. Stan Smith owns a property that has a net operating income of $20,000, principal and interest payments of $13,000, and an income tax liability of $5,000. What is Mr. Smith's cash flow after taxes?
50
300 sec
Q.
An investor purchases a property that has a projected NOI of $12,000. The property has a $95,000 mortgage at 5% interest with monthly payments of $552.53. The available capital cost allowance for the first year is $2,500. The taxable income for the first year is estimated to be:
