**There are total 40 questions. First 10 is shown here, the rest are in the attachment with solutions. Correct options are in red color. **

**1**. How much would you pay for the right to receive $80 at the end of 10 years if you can earn 15 percent interest?

*a. *$19.15.

*b. *$19.77.

*c. *$38.48.

*d. *$38.82.

*e. *$70.65.

**2. **How much would you pay to receive $50 in one year and $60 in the second year if you can earn 15 percent interest?

*a. *$88.85.

*b. *$89.41.

*c. *$98.43.

*d. *$107.91.

*e. *$110.00.

**3. **What amount invested each year at 10 percent annually will grow to $10,000 at the end of five years?

*a. *$1,489.07.

*b. *$1,637.97.

*c. *$1,723.57.

*d. *$1,809.75.

*e. *$2,000.00

**4**. What is the present value of $500 received at the end of each of the next three years and $1,000 received at the end of the fourth year, assuming a required rate of return of 15 percent?

*a. *$900.51.

*b. *$1,035.59.

*c. *$1,713.37.

*d. *$1,784.36.

*e. *$2,049.06.

**5**. Income multipliers:

*a. *Are useful as a preliminary analysis tool to weed out obviously unacceptable investment opportunities.

*b. *Are adequate as the sole indication of a property’s investment worth.

*c. *Relate the property’s price or value to aftertax cash flow.

*d. *None of the above.

**6**. The overall capitalization rate:

*a. *Is the reciprocal of the net income multiplier.

*b. *Incorporates the effect of mortgage financing.

*c. *Considers the risk associated with an investment opportunity.

*d. *All of the above are true.

**7.** A real estate investment is available at an initial cash outlay of $10,000 and is expected to yield

cash flows of $3,343.81 per year for five years. The internal rate of return is approximately:

*a. *2 percent.

*b. *20 percent.

*c. *23 percent.

*d. *17 percent

**8**. The net present value is equal to:

*a. *The present value of expected future cash flows, plus the initial cash outlay.

*b. *The present value of expected future cash flows, less the initial cash outlay.

*c. *The sum of expected future cash flows, less initial cash outlay.

*d. *None of the above.

**9**. Double taxation is most likely to occur if the income-producing properties are held in the form of a(n):

*a. *S corporation.

*b. *Limited partnership.

*c. *C corporation.

*d. *Real estate investment trust.

*e. *Limited liability company.

**10. **Which of the following ownership forms is the *least *able to flow through tax losses to investors?

*a. *S corporation.

*b. *Real estate investment trust.

*c. *Limited partnership.

*d. *Limited liability corporation.