A Negative Net Present Value Indicates That the

question 14

Multiple Choice

A negative net present value indicates that the

• A) project is acceptable.
• B) wrong discount rate was used.
• C) project's annual rate of return exceeds the discount rate.
• D) present value of the cash inflows was less than the present value of the cash out flows.

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Definitions:

Tenant-Days

A metric that represents the total number of days that all units in a property were occupied over a specific period.

Revenue Variance

The difference between actual revenue and budgeted or expected revenue.

Tenant-Days

A metric used in real estate or hospitality to measure the total number of days all units are rented out over a specific period.

Spending Variance

The difference between the actual amount spent on a particular expense category and the budgeted or planned amount for that category.