10) The IRR (Internal Rate of Return) is the discount rate at which the NPV (Net Present Value) is equal to the original cost of the project.

A) True B) False

11) The Ellwood model is an alternative way of estimating value which is based on

A) the band of investment approach.

B) the tax-explicit approach.

C) the finance-explicit approach.

D) discounting NOI and the net sale price.

12) The terms building and land residuals come from the fact that the value of the unknown component is the residual value left when the value of the independently estimated component is subtracted from the estimated total value.

A) True B) False