A Market Analysis Is Not

question 61

Multiple Choice

A market analysis is not

• A) an estimate of the price of a home.
• B) a guarantee of the price you will receive when selling a home.
• C) based on similar homes in the area.
• D) determined by multiplying the number of square feet in the home by the average price per square foot of comparable homes.

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Definitions:

Required Rate of Return

This refers to the minimum expected yield by investors to compensate for the risk of the investment.

Financial Break-Even

The point at which total revenues equal total costs and expenses, leaving no net profit or loss.

Initial Investment

The amount of money used to start a project, purchase an asset, or invest in a business venture for the first time.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life.