Monday, February 25, 2013
Chapter 5 Questions by Arianna Sandoval
1. A mortgagor is a real estate lender. T/F
2. ____is the discounted value of an income-producing asset considering both cash inflows to the asset owner and cash outflows from the asset owner.
b) Future Value
c) Net Present Value
d) Present Value
3. ___ is when you want to compound the value of some amount of money today other than a single amount into the future?
a) Present Value
b) Lump Sum
d) Net Present Value
4. If you invest 100,000 today at 7.5% what will that investment be worth in 10 years?
5. The most important part of time value calculations is the time and interest rate. T/F
6. Discounting is the process of determining the present value of a payment that is to be received in the future. T/F
7. Receiving payment at the end of a period is also referred to as an ordinary annuity. T/F
8. There are several problems with the IRR as a measure of return which includes not being able to tell you about the risk of the investment. T/F