Investment Decisions

What does NOI stand for in real estate finance?

Write in lowercase letters.

Choose two discounted cash flow methods, that are used for evaluating investments.

• Net Present Value (NPV)

• Earnings Per Share (EPS)

• Payback Period (PP)

• Internal Rate of Return (IRR)

Income taxes affect real estate decisions in three major phases:

• Acquisition phase

• Insurance phase

• Operation phase

• Marketing phase

• Disposition phase

The objective of analyzing real estate investmens is to compare property rights against requered equity investments.

• True

• False

What does NOI represent in real estate investment?

• Property’s maintenance cost

• Investor's total return after taxes

• Dividend expected over the next 12 months

• Loan interest payment

What type of straight line depreciation cost recovery period is typically applied to commercial property in current tax rules?

• 10 years

• 25 years

• 30 years

• 40 years