The Key to Meaningful Valuations in Real Estate Is to Use

question 27

Multiple Choice

The key to meaningful valuations in real estate is to use defensible cash flow estimates. All of the following statements are true in regards to generating accurate cash flow estimates EXCEPT:

• A) Investors should include only those sources of income and expenses that relate directly to the income producing ability of the property.
• B) Investors should only consider recent events, rather than long-term trends when evaluating revenue and expense items.
• C) Investors should obtain information about comparable properties whenever possible.
• D) Investors should take into consideration local zoning, land use, and environmental controls that may impact the future flow of funds.

---

Definitions:

Falciparum Malaria

A severe malaria caused by the parasite Plasmodium falciparum, characterized by high fever, chills, anemia, and in severe cases, cerebral malaria.

Heterozygous

A genetic condition where an individual has two different alleles of a gene.

Hemophilia A

A genetic disorder caused by deficient or defective clotting factor VIII, leading to excessive bleeding and difficulty clotting after injury.

Clotting Ability

The capacity of the blood to form clots, a critical process in stopping bleeding and beginning repair of damaged tissues.