Chapter 5. Questions

1. What is the process of determining the future value of an income stream by applying appropriate time value of money concepts.

          A. Compounding    B. Discounting     C. Future value   D. Present value
    
     2.  What is the process of determining the present value of an income stream by applying
          appropriate time value of money concepts.

         A. Compounding    B. Discounting    C. Future value    D. Present value

    3.  That portion of investment cash inflow designated as the repayment of invested capital is

        A. Return of      B. Return on    C. Amortization    D. Annuity

    4.  Mortgagor is a real estate lender
         A. T
         B. F
    5.  Amortization schedule is a same as Mortgage schedule
         A. T
         B. F
     6.  NPV is that the discounted value of an income-producing asset considering both cash inflows
         to the asset owner and cash outflow from the asset owner 
         A. T
         B. F
     7.  The term amortize derives from the French language and means "to kill off."
         A. T
         B. F
     8.  IRR is stand for Internal Revenue Rate.
         A. T
         B. F

*Answer 1. A   2. B   3. A   4. B   5. A   6. A   7. A  8. B