When calculating the internal rate of return of a real estate investment, which of the following is not a

necessary input?

a$.$ The periodic cash flow the property is expected to generate, i$.$e$.$ NOI

b$.$ The terminal cash flow at the end of the holding period, i$.$e$.$ sale price

c$.$ The minimum acceptable return, i$.$e$.$ required rate of return

Exit cap rate is used in which of the following property valuation approaches?

a$.$ Direct capitalization approach

b$.$ Discounted cash flow approach

c$.$ Cost approach

Holding everything else constant, which of the following changes would result in a higher property value

estimated using the direct capitalization approach?

a$.$ A decrease in the property's net operating income

b$.$ A decrease in the cap rate

c$.$ An increase in the property owner's holding period

Which of the following statements about commercial real estate analysis is incorrect?

a$.$ Discounted cash flow $($DCF$)$ is a better property valuation approach than direct capitalization.

b$.$ Net present value $($NPV$)$ is a better decision rule than internal rate of return $($IRR$).$

c$.$ Income approach is better than sales comparison approach