Associated with the income potential of property increases

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1. As the degree of risk and uncertainty associated with the income potential of property increases, which of the following will result?

A higher yield rate will mean a higher value.

A higher yield rate will mean a lower value.

A lower yield rate will mean a higher value.

A lower yield rate will mean a lower value.

2. If the market value cap rate (yield) on a certain type of property is 10%, and you expect the property to appreciate at 1.5% per year, what discount rate (total return) should be applied to determine the market value in a multi-year DCF analysis?

3%

10%

11.5%

13%

Reference no: EM131298159

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