Question
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
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.
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