1.True or False: The direct capitalization valuation method incorporates income over a multi-year holding period.

2.True or False: Staggering lease expirations mitigates the risk of volatility in the building's cash flow as it reduces the building's exposure to the changes in the rental market at a single point in time.

3.A small warehouse building is leased to a high quality tenant on a long term basis. The property is expected to produce $150,000 in net income from rental operations each year for seven years. The expected sale of the property at the end of the seventh year will generate additional net cash of $2,150,000.Assume the investor requires an 8% annual return on investments of similar risk. What is that investment worth today?

4.The owner of a 10-unit apartment building will deposit $3,000 per year ($300 per unit), in an interest bearing reserve account.These funds will be used to refurbish the apartments at the end of five years.If the deposits are made at the end of each year and will earn 3% interest compounded annually, what will be the accumulated value of those reserves at the end of 5 years?

5.You are valuing an investment that will pay you $11,000 the first year, $13,000 the second year, $15,000 the third year, $16,500 the fourth year and $20,000 the fifth year (all payments are at the end of each year). What it the value of the investment to you now is the appropriate annual discount rate is 8%?

6.Sam is buying a small office building for $250,000, and is putting 35% in equity.Sam has arranged to finance the remaining cost with a 4 year mortgage with a 5.5% interest rate and a 25 year amortization schedule.What is the monthly constant payment mortgage Sam must make? And what will be balloon payment due at loan maturity?

7.A partially amortizing mortgage is made for $80,000 for a term of 10 years. The borrower and lender agree that a balance of $30,000 will remain and be paid as a lump sum at loan maturity (balloon payment). If the interest rate is 7%, what must monthly payments be over the 10-year period?

Please include the calculation formula/ process