RLE 85 Ch 13-14

Front

What economic principle BEST describes the reason why Laura paid more than Megan for their houses?

Back

Progression

Front

Which of these figures accurately represents the property’s market value? $210,000, $215,000, $225,000, $235,000

Back

$210,000

Front

The principle that value is created when land use is in harmony with surrounding standards is

Back

conformity.

Front

What is the term for Kat’s activity of purchasing three adjacent lots from three owners, planning to make a profit by selling the three lots as one?

Back

Plottage

Front

The length of time required for the stream of cash flows produced by an investment to equal the original cash outlay is referred to as the

Back

payback period.

Front

The annual rate of return on capital generated by an investment over the entire period of its ownership is called the

Back

net present value.

Front

Direct capitalization and cash-on-cash return are methods of

Back

evaluating equity investments.

Front

If a new property that has been purchased for $550,000 produces an annual net operating income of $49,500, what is its overall rate of return?

Back

9%

Front

Curable depreciation refers to damage that

Back

can be corrected economically.

Front

For which of the following properties would the straight-line method of depreciation most likely be used in determining value? Grand Beach Shopping Mall, Ocean View Condominiums, St. Veronica’s Catholic School, Clearing Office Park

Back

Ocean View Condominiums