Exam 3: Central Place Theory and the System of Cities

The real appreciation return was:

What is the Present Value of property with has a current year NOI of $100,000, which will grow at 3% per year, and can be discounted at a rate of r=8%?

All of the following are examples of the "savings objective" of investment except:

If a property will produce net cash flow that grows at a rate of 1.5% per year in perpetuity, and the opportunity cost of capital is 12%, then what is the "cap rate" net cash flow / property value) for the property?

For the two questions below, consider the following period-by-period total returns: Year 1: 5.00% Year 2: 15.00% Year 3: 25.00% -What is the arithmetic average total return per year for the Years 1-3 period?

Suppose you pay $100,000 for a property today. The property appreciates 8% in the first year, and 12% in the second year. The third year yield was 7%. What was the income generated by the property in year 3?

Suppose an asset is worth $100,000 now and in one year it will either be worth $115,000 or $95,000 with equal chance). The expected return and risk as defined in Chapter 9) are:

You expect to have to make a capital improvement expenditure of $50,000 in a property in 5 years. If you can only set aside at most $800 at the end of each month in a sinking fund, and the annual interest in the sinking fund is 6%, then how many months in advance of the 5-year horizon must you begin saving the money?

You need to borrow $100,000 for a down-payment on a house, and $900.00 per month is the most you can afford. How long a loan term must you get in your mortgage, if the interest rate is 9%?

For the two questions below, consider the following period-by-period total returns: Year 1: 5.00% Year 2: 15.00% Year 3: 25.00% -What is the geometric average total return per year for the Years 1-3 period?