8. The placement of nonrecurring capital expenses in pro forma cash flow projections has not been standardized. The modern treatment of capital expenditures in investment analysis is to treat capital expenditures:

a. above-line b. below-line c. in-line d. out-of line

9. The debt coverage ratio is used to indicate how much the NOI can decline before it will not cover the debt service on the property. DCRs can vary based on competition within a particular market, lenders usually seek a minimum DCR of:

a. 0.90 b. 1.00 c. 1.20 d. 1.45

10. You are purchasing a property for $500,000. Calculate the cash down payment required to purchase the specific property. Loan Amount: 80% of purchase price, Up-front financing costs: 2.5% of loan amount.

a. $136,250 b. $110,000 c. $90,000 d. $100,000