To Overcome the Potential Shortcomings of Single-Year Decision Making Metrics,many

question 27

Multiple Choice

To overcome the potential shortcomings of single-year decision making metrics,many investors in real estate also perform multiyear discounted cash flow (DCF) valuation.DCF valuation differs from the single-year ratio analysis in all of the following ways EXCEPT:

• A)Only with DCF must the investor estimate an appropriate investment horizon accounting for how long she will hold the property.
• B)Only with DCF must the investor select the appropriate yield at which to discount all expected future cash flows.
• C)Only with DCF must the investor make explicit forecasts of the property's net operating income for each year in the expected holding period.
• D)Only with DCF must the investor use a defensible cash flow estimates that incorporates appropriate measures of income and expenses.

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Definitions:

Hypocrisy Attribution Dynamic

A psychological pattern where individuals judge others as hypocritical without recognizing similar behaviors within themselves.

Factitious Disorder

A mental disorder in which a person acts as if they have a physical or mental illness when they are not really sick.

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A category of brain diseases that cause a long term and often gradual decrease in the ability to think and remember, affecting daily functioning.

Psychosis

A mental disorder characterized by a disconnection from reality, which might include delusions and hallucinations.