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Question 12 Single-year ratios utilizing the applicable first stabilized annual cash flow and used to make investment decisions by either comparing investment value to purchase
Question 12 Single-year ratios utilizing the applicable first stabilized annual cash flow and used to make investment decisions by either comparing investment value to purchase price or by comparing relative ratios between the subject property and other investment options include... Profiability ratios (CR \& EDR) Inoome multipliers (NIM \& EGIM) Financial risk ratios (OER, LTV \& DCR) a and b a. b and c Question 13 1 pts Cap rate can be used to calculate investment value by dividing the investment s estimated first stabilized NOI by the market cap rate (extracted), or it can be used to compare and choose between investment options by solving for the cap rate on each investmentoption by dividing fieinvestment's first stabilized NOl by the purchase price and then choosing the option (among comparable options) with the lowest cap rate
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