question 10

Question 1 5 pts USPAP regulations state an appraiser must estimate the value of an income producing property based on approaches to value. One Two Three No specific number of approaches are required Question 2 5 pts Investment Value using income capitalization (equity residual model) estimates value to the market place using market based criteria to typical investors using typical investment criteria found in the market place to a specific investor using that specific investor's criteria only estimates the value of the equity since the mortgage is not taken into account Question 3 5 pts Which approach to value generally estimates the highest value, and is least likely to be relied on by the appraiser when estimating value of an older income producing property? Cost approach Income approach Market data approach . None of the above. Rules require the appraiser to use all three approaches and average them to arrive ata, final valuation estimate D Question 4 5 pts Mechanically speaking, the main difference between market value and investment value is Market value capitalizes before tax cash flow and Investment value capitales net operating income (NO) Market value capitalizes the net operating income (NO) and adds back the loon balance where investment value capitalizes the before tax cash flow and adds back the loans balance There is no difference Bloth valuation models are identical Notes capitalized by the market cap rate for market value, and before tax cash flow (BTCF) is capitalied by the lowestor's desired rate of return for Investment value. The more balance is not relevant Net operating income INON is capitalized by the market caprate to arrive at market value Before tax cach Tow (BTCF) is capitalized by the investors desired rate of return to arrive at the value of the city position then the loan balance is added back to arrive at total investment value Question 5 5 pts Scenario Document Referring to the attached valuation scenario #1 What is the indicated MEAN cap rate? 10.67% 10.78% 11.87% 1.07% Question 6 5nte Question 6 5 pts Scenario Document Referring to the attached valuation scenario #1 What is the value of the subject property using the income capitalization approach to value and the mean cap rate? $7,244,000 56,987,322 56.751.165 56.719,852 Question 7 5 pts Referring to the attached valuation scenario #1 Scenario Document What is the weighted mean cap rate? 10.73% 11.01% 10.78% 11.20% D Question 8 5 pts Referring to the attached valuation scenario #1 Scenario Document What is the value of the property using the weighted mean cap rate? $6,751.165 $6.719,852 $6,585,455 The value can not be determined using this method Question 9 5 pts Question 9 5 pts Referring to the attached valuation scenario #1 Scenario Document What is the value if you were to use the median cap rate? $6,586,455 $6,719,852 $5.999,899 56,627.603 Question 10 5 pts Question 10 5 pts Referring to the attached valuation scenario #1 Scenario Document What is the value if you were to use the mode cap rate? $6,467.857 $6,439,756 56,585,455 56,751,165