Valuation of Real-estate II Welcome to your Valuation of Real-estate II 1. Which investment method involves calculating the present value of future cash flows? Discounted cash flow (DCF) technique Internal rate of return (IRR) Net present value (NPV) Layer approach 2. Internal rate of return (IRR) is: The rate of return that makes the net present value zero The rate at which cash flows are discounted in the DCF technique The difference between the present value and future value of an investment The yield obtained from equitable distribution of cash flows 3. Net present value (NPV) is: The difference between the initial investment and the present value of cash inflows The rate at which cash flows are discounted in the DCF technique The internal rate of return for a project The yield obtained from equitable distribution of cash flows 4. Which investment method measures the present value of future cash flows? Discounted cash flow technique I.R.R. N.P.V. Layer approach 5. What does I.R.R. stand for? Internal Rate of Return International Revenue Recognition Investment Return Ratio Interest Rate Risk 6. Which investment method calculates the difference between the present value of cash inflows and outflows? Discounted cash flow technique I.R.R. N.P.V. Ellwood approach 7. The Layer approach is primarily used in the valuation of: Plantation Agricultural land Forest Orchards 8. The Equitable Yield approach is commonly applied to value: Plantation Agricultural land Forest Orchards 9. Which investment method considers the timing and amount of cash flows to determine the rate of return? Equitable yield Ellwood approach Discounted cash flow technique Equated yield 10. In the valuation of mines, which of the following factors should be considered? Mineral reserves Equipment and machinery Royalty rights All of the above 11. Goodwill is an example of: Plant and machinery Intangible asset Agricultural land Forest 12. Which investment method calculates the average annual income over the expected life of the asset? Discounted cash flow technique I.R.R. Layer approach Ellwood approach 13. Which valuation approach is most suitable for determining the value of a royalty right? Equitable yield Equated yield Layer approach Ellwood approach 14. When valuing a plantation, which factors should be considered? Crop yield potential Land fertility Access to water sources All of the above 15. In the valuation of forest land, which factor is particularly important? Timber value Soil quality Climate conditions Market demand for lumber 16. Which investment method calculates the rate of return that makes the present value of cash inflows equal to the present value of cash outflows? Discounted cash flow technique I.R.R. N.P.V. Equated yield 17. What is the primary consideration when valuing agricultural land? Soil fertility Market demand for crops Location Weather patterns 18. What is the purpose of valuing plant and machinery? Determining replacement cost Assessing residual value Calculating depreciation All of the above 19. What is the accounting treatment of reserves created by revaluation of assets? Shown as a liability on the balance sheet Shown as an expense on the income statement Shown as additional paid-in capital Shown as a revaluation surplus on the balance sheet 20. Which legislation can impact the valuation of properties in terms of rental income? Rent control law Town planning law Building code regulations Environmental protection law 21. What is the primary role of a valuer? Assessing the market value of assets Preparing financial statements Conducting financial audits Implementing tax planning strategies 22. What is the function of a valuer? Analyzing financial statements Conducting market research Preparing legal documents Evaluating investment opportunities 23. Which of the following is a responsibility of a valuer? Ensuring compliance with tax regulations Managing a company's payroll Developing marketing strategies Monitoring inventory levels 24. Which of the following represents the code of ethics for valuers? Generally Accepted Accounting Principles (GAAP) International Financial Reporting Standards (IFRS) International Valuation Standards (IVS) Uniform Commercial Code (UC 25. When valuing a property, which ethical principle should a valuer adhere to? Transparency Conflict of interest Confidentiality Independence 26. What is the role of a valuer as an expert witness in court? Presenting objective valuation evidence Offering legal advice to the court Providing financial investment recommendations Investigating potential fraud cases 27. Which legislation can impact property valuations by restricting rental price increases? Rent control law Zoning regulations Building safety codes Securities exchange regulations 28. Which financial statement would reflect the reserves created by revaluation of assets? Balance sheet Income statement Statement of cash flows Statement of retained earnings 29. What is the purpose of rent control laws? Limiting the transfer of property ownership Regulating the maximum allowable rent increases Ensuring fair competition among real estate agents Promoting environmentally friendly building practices 30. Which ethical principle requires a valuer to avoid any personal or financial conflicts of interest? Objectivity Confidentiality Integrity Independence 31. Which of the following is a key responsibility of a valuer? Setting financial accounting standards Assessing creditworthiness of borrowers Conducting property inspections Designing marketing campaigns 32. What is the purpose of a valuer's code of ethics? Ensure accurate financial reporting Establish guidelines for property valuations Regulate the fees charged by valuers Define the ethical standards and conduct for valuers 33. In court proceedings, what role does a valuer serve as an expert witness? Provideobjective valuation evidence Represent one of the parties involved in the case Determine the guilt or innocence of the accused Mediate disputes between the plaintiff and defendant 34. When valuing a hotel, which of the following factors should be considered? Occupancy rates Revenue per available room Market demand for hotel services All of the above 35. What is the primary consideration when valuing a cinema property? Number of screens Ticket sales revenue Location Seating capacity 36. Which factor is most important when valuing a petrol pump? Location Fuel prices Vehicle traffic volume Brand reputation 37. What is a key consideration when valuing hill station properties? Scenic views Accessibility Availability of recreational activities All of the above 38. What is a time-shared property? A property jointly owned by multiple individuals A property available for short-term rentals A property with specific time allocation for different owners A property located in a time-limited development zone 39. When valuing transferable development rights, what are easement rights? Rights to use a property for a specific purpose Rights to transfer development rights to another property Rights to access a neighboring property Rights to underground resources on a property 40. What is the valuation approach used for life interest in a property? Income capitalization approach Cost approach Sales comparison approach Investment analysis approach 41. When valuing properties with forcible or unauthorized occupancies, what factor should be considered? Legal restrictions on occupancy Historical significance of the property Current market demand for similar properties Potential rental income from the unauthorized occupants 42. What is the purpose of value contour maps in mass appraisal techniques? To display the distribution of property values in a specific area To determine the average property value for an entire region To identify properties with unique characteristics for individual appraisals To calculate the total market value of all properties in a city 43. Which mass appraisal technique is based on statistical models and regression analysis? Sales comparison approach Income capitalization approach Cost approach Automated valuation model (AVM) 44. In hotel valuation, the revenue per available room (RevPAR) is calculated by dividing: Total hotel revenue by the number of rooms Total hotel revenue by the occupancy rate Room rates by the number of occupied rooms Room rates by the number of available rooms 45. When valuing a cinema property, which factor can have a significant impact on revenue generation? Popularity of movies being screened Availability of concession stands Seating arrangement and comfort All of the above 46. What is the primary consideration when valuing a petrol pump? Brand association and loyalty Location and accessibility Fuel prices and competition Overall facility condition and maintenance 47. When valuing hill station properties, what factor can greatly influence market demand? Proximity to tourist attractions Availability of recreational activities Climate and weather conditions All of theabove 48. Value contour maps are used in mass appraisal techniques to: Identify areas with the highest property values Determine the average property value for a specific neighborhood Analyze the distribution of property values across a geographic area Predict future changes in property values based on market trends 49. When valuing properties with forcible or unauthorized occupancies, what factor should be considered? Legal restrictions on occupancy Historical significance of the property Current market demand for similar properties Potential rental income from the unauthorized occupants 50. What is the purpose of value contour maps in mass appraisal techniques? To display the distribution of property values in a specific area To determine the average property value for an entire region To identify properties with unique characteristics for individual appraisals To calculate the total market value of all properties in a city 51. What is the primary role of a valuer? Assessing the market value of assets Preparing financial statements Conducting financial audits Implementing tax planning strategies 52. What is the function of a valuer? Analyzing financial statements Conducting market research Preparing legal documents Evaluating investment opportunities 53. Which of the following is a responsibility of a valuer? Ensuring compliance with tax regulations Managing a company's payroll Developing marketing strategies Monitoring inventory levels 54. Which of the following represents the code of ethics for valuers? Generally Accepted Accounting Principles (GAAP) International Financial Reporting Standards (IFRS) International Valuation Standards (IVS) Uniform Commercial Code (UC 55. When valuing properties, which ethical principle should a valuer adhere to? Transparency Conflict of interest Confidentiality Independence 56. What is the role of a valuer as an expert witness in court? Presenting objective valuation evidence Offering legal advice to the court Providing financial investment recommendations Investigating potential fraud cases 57. Which ethical principle requires a valuer to avoid any personal or financial conflicts of interest? Objectivity Confidentiality Integrity Independence 58. Which legislation can impact the valuation profession and require adherence to ethical standards? Tax laws Environmental protection laws Securities regulations All of the above 59. What is the purpose of a valuer's code of ethics? Ensure accurate financial reporting Establish guidelines for property valuations Regulate the fees charged by valuers Define the ethical standards and conduct for valuers 60. In court proceedings, what role does a valuer serve as an expert witness? Provide objective valuation evidence Represent one of the parties involved in the case Determine the guilt or innocence of the accused Mediate disputes between the plaintiff and defendant Quiz navigator configuration error. Contact the website administrator for help. Time's up
