Question: 3. total development cost are $200/SF. Cap rate in the asset market are 8%. What is the replacement cost net operating income in this market?

3. total development cost are $200/SF. Cap rate in the asset market are 8%. What is the replacement cost net operating income in this market?

A.$200

B. $2500

C. $16

D. insufficient information

5. True or False: There is no difference between a discount rate and an internal rate of return(IRR)

8. You acquire a $20 million MF property with a Loan to Value of 80%. The cost of debt is 6% and the cost of equity is 12%. What is the WACC?

A. 10.8%

B. 20.0%

C. 7.2%

D. insufficient information

12. Which of these is not a financial metrics for measuring Equity value?

A. IRRS

B. Repayment Period

C. Replacement Costs of Asset

D. Probabilities of Returns

E. Alternative Investments

14. Limitations regarding internal Rates of Returns include all the following, except:

A. Does not tell you the size or timing of the expected cash flows

B. ignores the length of the investment period

C. Does not incorporate the VPN rule

E. Does not purport to be the correct discount rate for the project

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