1. If operating expenses are $250,000, potential gross income is $650,000, and the maximum acceptable default ratio is .85, the largest mortgage loan the property will support when the annual debt service constant of .105 is:
1) less than $2.9 million.
2) between $2.9 million and $3.1 million.
3) more than $3.1 million.
4) not determinable with available information.
2. Assume a tax deductible loss of $33,634; and a pre-tax cash flow of ($8,634). If the investor is in the 28% tax bracket, what would the after-tax cash flow of this investment be?
3. Investor-owned office buildings:
1) tend to be more luxurious and aesthetically pleasing than owner-occupied office buildings.
2) are usually designed to project the desired image of the tenants.
3) are typically leased on a year-to-year basis.
4) are often leased with provisions for tenants to pay operating expenses above some specified amount per square foot.
4. When a developer or investor acquires a piece of land and then attempts to determine the highest and best use for her property, this is an example of:
1) an idea in search of a site.
2) a site in search of an idea.
3) a feasibility study.
4) none of the above.
5. Real estate developers:
1) function primarily as brokers; intermediaries between buyers and sellers.
2) work almost exclusively with their own equity funds, and use borrowed money only if they intend to hold developed properties in their own portfolios.
3) seldom include buildings among the improvements they add to land.
4) are often able to satisfy an as yet unmet demand and thereby reap the economic benefits of short-term monopoly.
6. Feasibility studies address the question of:
1) what will work.
2) what should be done.
3) which alternative course of action will achieve the best results in terms of the investor's objectives.
4) philosophical limitations.
7. A proposal is said to be feasible when:
1) there is a high level of certainty that goals will be attained.
2) there is a reasonable likelihood of satisfying explicit objectives.
3) a selected course of action is tested for fit to a context of specific constraints and limited resources.
4) the amount and timing of required cash expenditures and expected cash inflows are assessed in the context of the degree of confidence that attaches to the estimates.
8. Subdivision, a term applied to the land development process, may involve all of the following except:
1) improving land by adding roads, storm sewers and sidewalks.
2) surveying the land and dividing it into individual building lots.
3) constructing buildings and other improvements on the land.
4) selling individual building lots that have been created.www.BryteWave.com
This is the link of the online book. When you get into the website, click the "a±vate" whixh
shows below :
And them the user name is "gus" and the password is "21075gsf", The choice of school is
"Oregon state University".
Chapter 19 will help to figure out the first question, Chapter 12 for 2a and Chapter 13 for 2b
from the class book.
This question is from the chapter 19, 20 , 21 and 22 in the text book.
This question was answered on: May 23, 2022
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