7. Regarding the value of a property, an appraisal: a. calculates value. b. confirms value. c. estimates value. d. determines value. 8. A comparable property has a feature that is superior to the subject property. What adjustment would be made in the sales comparison approach to value? a. Value of the feature would be subtracted from the sales price of the comparable property b. Value of the feature would be added to the sales price of the comparable property c. Value of the feature would be subtracted from the value of the subject property d. Value of the feature would be added to the value of the subject property 9. Which of the following is TRUE concerning the capitalization rate? a. It is an IRR. b. It explicitly considers projected future income and changes in property value over time. c. It expresses relationships between income and property value at a specific point in time. d. If is the rate of return that investors expect to earn on all capital invested. 10. 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? a. Sales comparison approach b. Income approach c. Cost approach d. Direct capitalization approsch