2. What expenses do owners sometimes not include in their income statements?
3. What are the two deductions you take from Potential Gross Income? Why are they different?
4. What is a reimbursable expense?
5. If you manage your own building, should you charge a management fee?
6. If I have to replace a carpet every 10 years and it will cost 5000 to replace it, how much should I put in to a reserve fund each year?
7. What ratio is very important in analyzing a reconstructed operating statement?
8. What two methods are used under the income approach?
9. Where can you get capitalization rates?
10. If the income is 1000 and the capitalization rate is 8 percent, what is the value?
11. If the income is 500 and the value is 4,545, what is the capitalization rate?
12. If the capitalization rate is 8 percent, what is the multiplier?
13. What does the reciprocal of the capitalization rate tell you?
14. If a comparable property sold at an 8 percent capitalization rate, and it is superior to the subject property, what capitalization rate should you use?
15.
What is the average?
What if you think sale 1 is the best sale and give it 50% of the weight and the other two 25% each, what is the weighted rate?
16. Does Direct Capitalization make a distinction between return on capital and return of capital?
17. What two cash flows are considered under discounted cash flow?
18. What are the five steps in DCF?
19. What is the formula for compounding?
19. What is the formula for discounting?
20. When is DCF analysis a better method than Direct Capitalization?
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