Question: QUESTION 21 Multiple Answer Questoin: In the case TVM: Buy Versus Rent Analysis, the decision that Rebecca faced was influenced by many factors including: Differences

 QUESTION 21 Multiple Answer Questoin: In the case TVM: Buy Versus

QUESTION 21 Multiple Answer Questoin: In the case TVM: Buy Versus Rent Analysis, the decision that Rebecca faced was influenced by many factors including: Differences in monthly payments (.e. rent vs mortgage) Down payment O HPA and patterns of HPA Opportuinty costs QUESTION 22 In his analysis, Nichols used an Exit Cap Rate assumption. The Exit Cap Rate determines the multiple of future cash flow that the building can be sold for at some point in time in the future (16 years in the case) O True O False QUESTION 23 used to measure the risk adjusted rate of return required for an investment of similiar risk to the given project (in this case, In his analysis, Nichols also used a Discount Rate assumption. The Discount Rate operating the Kelly Building) O True O False QUESTION 24 Mulltiple Answer Question: Among Nichols error in techniques were which of the following: Failure to utilize the correct strike price of $24M Incorrectly calculating the expected value of the building by not taking the the PV of future cash flow computed 1 year into the future Not taking into consieration the volatility of the buildings price Failure to incorporate a range of scenarios and instead focusing on a single point estimate price for the building QUESTION 21 Multiple Answer Questoin: In the case TVM: Buy Versus Rent Analysis, the decision that Rebecca faced was influenced by many factors including: Differences in monthly payments (.e. rent vs mortgage) Down payment O HPA and patterns of HPA Opportuinty costs QUESTION 22 In his analysis, Nichols used an Exit Cap Rate assumption. The Exit Cap Rate determines the multiple of future cash flow that the building can be sold for at some point in time in the future (16 years in the case) O True O False QUESTION 23 used to measure the risk adjusted rate of return required for an investment of similiar risk to the given project (in this case, In his analysis, Nichols also used a Discount Rate assumption. The Discount Rate operating the Kelly Building) O True O False QUESTION 24 Mulltiple Answer Question: Among Nichols error in techniques were which of the following: Failure to utilize the correct strike price of $24M Incorrectly calculating the expected value of the building by not taking the the PV of future cash flow computed 1 year into the future Not taking into consieration the volatility of the buildings price Failure to incorporate a range of scenarios and instead focusing on a single point estimate price for the building

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