REFM Module 2 Question Bank Question and answers verified to pass 2024/2025
4 views 0 purchase
Course
REFM
Institution
REFM
REFM Module 2 Question Bank Question and answers verified to pass 2024/2025 REFM Module 2 Question Bank
In a discounted cash flow analysis, property value is evaluated using: - correct answer Pre-tax Cash Flows
T/F: You should always choose the project that generates the highest NPV? - c...
REFM Module 2 Question Bank
In a discounted cash flow analysis, property value is evaluated using: - correct
answer ✔Pre-tax Cash Flows
T/F: You should always choose the project that generates the highest NPV? -
correct answer ✔False. NPV Other factors to consider: expertise in market,
does it fit investment strategy, what could go wrong, etc.
What tells you how much net value the investment is expected to create? -
correct answer ✔Net Present Value
What is the formula for calculating the present value with a 3-year timeline? -
correct answer ✔CF/((1+r)*(1+r)*(1+r))
When calculating the present value, the time unit can be: (Select all that
apply) - correct answer ✔Daily/Weekly/Monthly/Quarterly
Reversion Value is also known as: - correct answer ✔Terminal Value
T/F: When considering a development project, the development cash outflows
are fairly certain to occur, while the operating cash inflows are relatively
uncertain. - correct answer ✔True
What is another name for the discount rate in a discounted cash flow
analysis? - correct answer ✔The required annual return
T/F: When solving for a future value with a timeline greater than one year, the
investment earns a compound return. - correct answer ✔True
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Carzola98. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.99. You're not tied to anything after your purchase.
