1. Which of the following techniques is NOT associated with the income approach to valuation?

• Capitalization rate

• Discounted present value

• Factor discounting rates

• Gross income multiplier

2. The principle that an informed purchaser would not spend more for a piece of real estate than the cost to purchase the land and the cost to construct a structure, provides the rationale for which of these valuation methods?

• Sales comparison approach

• Income approach

• Cost approach

• Direct capitalization approach