13. Which of the following is not true?

Select one:

A. A zero NPV project is a good deal.

B. A project with positive NPV is a good investment.

C. When profitability index is greater than one, it is a good investment.

D. When profitability index equals to one, it is not a good deal.

12. What is the effective rent for the following rental cash flow: R1=15, R2=18, R3=20, R4=22, R5=24, R6=27, Discount rate=8%?

Select one:

A. 21.45

B. 23.21

C. 20.49

D. 22.09

11. Which of the following will lead to over valuation for a property in DCF practice, ceteris paribus?

Select one:

A. Capital improvement expenditure projection is too high.

B. Discount rate is too low.

C. Rent growth assumption is too low.

D. Income growth assumption is too low.