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If a Broker Makes a Statement That Certain Minority Groups

question 2

Multiple Choice

If a broker makes a statement that certain minority groups are moving into a neighborhood,and that property owners should sell quickly at a reduced price to avoid further depreciation,they are using an illegal practice known as:

Definitions:

Salvage Value

An estimation of what an asset will be worth at the end of its usable life.

Payback Period

This is the length of time required to recover the initial investment cost of a project, calculated by dividing the investment amount by the annual cash inflows.

Net Present Value

A calculation that compares the value of all cash inflows and outflows of a project or investment by discounting them to their present value.

Straight-Line Depreciation

A technique for distributing the expense of a physical asset across its lifespan in consistent yearly installments.