8.The cap rate can be used to forecast a future sales price. An investor is wanting to sell a property after a holding period of five years. She will use the cap rate of 9%. The first year's NOI was $135,000. The sixth year's NOI was $150, 550. What is the projected end of year five sale price?

	1.	$1,596,332
	2.	$1,672,777
	3.	$11,250.00
	4.	$1,012

9.

Taxes impact real estate investments and helps the investor make decisions. Real property tax classifications are real property (tangible) or personal (intangible). Classifications include all of the following except:

	1.	Inventory Property
	2.	Investor Property
	3.	Inventory Property
	4.	Automobile

10.

Allocating basis must be allocated amount land and improvements. You purchased a property for $100,000. The assessor's office assessed the property for $98,000. The assessor allocated $68,600 to the improvements, and $29,400 to the land. The acquisition costs are 3,000. Calculate the basis of the improvements.

	1.	$103,000 Land $0 Improvements
	2.	$70,000 Improvements $30,000 Land
	3.	$72,100 Improvements $30,900 Land
	4.	None of the above.

11.

The annual deduction based on the class life of an asset is:

	1.	Cost of Recovery
	2.	Cost of Sale
	3.	Special Improvement Tax
	4.	Net Income

12.

Investor Smith bought a four-plex apartment property for $500,000. The property's assessed value was $485,000, of which $388,000 is for improvements and $97,000 is for land. The property was purchased on the first day of the tax year. The IRS Cost Recovery Percentage is .03485. What is the cost recovery for the year of acquisition?

	1.	80%
	2.	20%
	3.	$100,000
	4.	$13,940

13.

Investor Smith has an amortization term that is longer than the term to maturity. His loan is a(n):

	1.	Fully Amortized Loan
	2.	Interest-Only Straight Term Mortgage
	3.	Partially Amortized Loan
	4.	Level Payment Loan

15.

Investor Smith's mortgage lender is requiring a debt service coverage ratio (DSCR) of 1.25. His NOI is $230,000 and his annual debt service is $163,000. Does Investor Smith have the capacity to repay this loan based on the DSCR required?

	1.	No, because the borrower's DSCR is 1.23.
	2.	No, because the borrower's DSCR is 1.00.
	3.	Yes, because the borrower's DSCR is 1.41.
	4.	Yes, because the borrower's DSCR is 1.33.