The Normal Method to Reach a Final Estimate of Value

question 3

Multiple Choice

The normal method to reach a final estimate of value in a narrative appraisal is

• A) an adjusted average of the approaches to value as determined by the judgment of the appraiser.
• B) whatever value is shown by the major approach.
• C) a mathematically determined average of all approaches.
• D) only the capitalized value as determined by the current market rate of return.

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Definitions:

R&D Expenditures

Funds allocated by a government, corporation, or other entity towards research and development activities aimed at innovating and improving products or processes.

Interest-Rate Cost-Of-Funds

The expense associated with borrowing funds, often determined by the interest rate at which money is borrowed.

Expected-Rate-Of-Return

The anticipated percentage of profit or loss an investment is likely to generate.

Immediate Costs

Expenses that are directly incurred and need to be paid out in the short term.