The Major Advantage of the Forced-Choice Appraisal Method Is the Appraiser

question 62

True/False

The major advantage of the forced-choice appraisal method is the appraiser does not know the "right" answers; hence bias and distortion are increased.

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Definitions:

Present Investment

Present investment refers to the current amount of money allocated for particular assets or projects, focusing on capital allocation and potential returns.

Total Cost Approach

The total cost approach is an assessment method that considers all possible costs related to a product or project, including direct, indirect, fixed, and variable costs.

Discount Rate

The discount rate is the interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Salvage Value

The predicted remaining value of an asset at the termination of its functional life.