Question: Conerning the capitalization rate (cap rate) and the internal rate of return (IRR):Check All That ApplyThe capitalization rate and the IRR quantify the same thing,

Conerning the capitalization rate (cap rate) and the internal rate of return (IRR):Check All That ApplyThe capitalization rate and the IRR quantify the same thing, but use different variables.The capitalization rate and the IRR quantify the same thing, but use different variables.The IRR includes the risk rate plus the growth rate embedded in the future cash flows (earnings) whereas the cap rate only includes the risk rate.The IRR includes the risk rate plus the growth rate embedded in the future cash flows (earnings) whereas the cap rate only includes the risk rate.The IRR is that rate of return that always results in a 0 NPV (net present value) investment and the cap rate measures the relationship between the current NOI (net operating income) and value of the investment property.The IRR is that rate of return that always results in a 0 NPV (net present value) investment and the cap rate measures the relationship between the current NOI (net operating income) and value of the investment property.If the IRR is > cap rate, that means the investment is always a -NPV (negative net present value).If the IRR is > cap rate, that means the investment is always a -NPV (negative net present value).If the IRR < cap rate, that means the investment is always a +NPV (positive present value).If the IRR < cap rate, that means the investment is always a +NPV (positive present value).If the IRR = cap rate, that means the investment is always a 0NPV (zero net present value)

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