Name: Homework 6

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Instructions:  

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Question 1   Multiple Answer (1.0000 points)
  Question: Which of the following are appropriate considerations when selecting an appropriate estimated holding period when using the discounted cash flow technique?
(Check all that apply)
 
 
    The type of investment property
Federal income tax laws
Local market conditions
The indicated holding periods as determined by looking at sales of similar property
Tenant surveys
 
 

 

Question 2   Multiple Answer (1.0000 points)
  Question: When estimating the appropriate vacancy and collection losses for a property, which of the following should be considered? (Check all that apply)
 
 
    Historic vacancy and collection losses
An analysis of anticipated lease expirations
An analysis of current tenant's late payment history
An analysis of existing competition
An analysis of proposed competition
 
 

 

Question 3   Multiple Answer (1.0000 points)
  Question: When estimating the appropriate level of operativg expenses each period of a discounted cash flow analysis, which of the following should be analyzed? (Check all that apply)
 
 
    The historic pattern of expenses for the property
Anticipated price changes for each expense item over the holding period
Anticipated tenant improvements needed upon
Anticipated sales commission upon reversion
Anticipated marketing expense needed to get a new tenant
 
 

 

Question 4   Multiple Answer (1.0000 points)
  Question: When projecting cash flows from refinancing, which of the following must be determined? (Check one.)
 
 
    The expected year of the refinancing
The anticipated underwriting standards
The estimated value of the property and net income
Anticipated loan fees
Anticipated incidental refinancing fees
 
 

 

Question 5   Multiple Answer (1.0000 points)
  Question: When estimating the expected cash flow from reversion,
which of the following should be analyzed?
(Check all that apply)
 
 
    An estimated sale price at reversion
Estimated brokerage fees associated with reversion
Estimated legal fees associated with reversion
Estimated transfer taxes associated with reversion
Tax consequences associated with the reversion