8. Which of the following statements would reduce the market value estimate? (1) The purchaser has a low personal tax rate. (2) The estimates for market rent increases were based upon the employment created from the opening of a new plant, a project that has subsequently been cancelled. (3) A larger amount of the purchase price can be apportioned to the building upon purchase and, therefore, a larger amount of CCA can be claimed. (4) The purchaser can obtain a below-market interest rate for her mortgage. 9. A junior appraiser in your firm has appraised this property using the direct capitalization of Year 1 net operating income as well as the discounted cash flow (DCF) approach, but she has come up with different figures for appraised market value. Which of the following is MOST likely to be a factor in this difference? (1) The appraiser capitalized current rents in the direct capitalization approach, but accounted for anticipated future rent increases in the DCF approach. (2) The purchaser is in a lower tax bracket than the average real estate investor. (3) Eight years ago, this property was sold with vendor financing written at a below-market interest rate. (4) The direct capitalization approach recognizes the potential for significant property appreciation in future, but the DCF approach does not.10. Which of the following statements does NOT describe the summation method of determining the capitalization rate? (1) It is calculated by adding risk premiums to the expected rate of return of a risk-free asset. (2) It may account for liquidity risk, cyclical risk, and high transaction costs. (3) It can rarely be justified because risk premiums are calculated based on estimations, which can lead to signification variations at the end. (4) It assumes that the expected return on investment will satisfy the expectations of both debt holders and shareholders.12. What is the difference between net effective rent (NER) and contract rent? (1) NER is gross rent while contract rent is equivalent to base rent. (2) NER reflects the net cash-flow after all tenant inducements and allowances. (3) NER is analogous to contract rent. (4) Contract rent is based on the stated lease terms while NER is adjusted for the impact of percentage rent