An Appraisal Usually Contains Three Approaches to Valuation

question 32

Multiple Choice

An appraisal usually contains three approaches to valuation.Which of the following is NOT one of those approaches?

• A)The Market Approach
• B)The Ratio Approach
• C)The Cost Approach
• D)The Income Approach

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Definitions:

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Expenditure

The total amount of money spent by an individual, firm, or government on goods and services.

Innovation

The process of creating new methods, products, or ideas that bring about significant improvements or changes.

Diffusion

The process by which a new idea, product, or practice spreads through a population or society.