darceline1574
10.04.2020 •
Business
You have been asked to prepare a valuation of a residential property. The subject property is a house that is 1,200 square feet and is NOT located in a gated community. Below are four comparables that you have identified that fit the subject property.
A 1,500 square foot house was sold one year ago for $300,000. It is located in a gated community.
A 1,500 square foot house was recently sold for $285,000 and is located in a gated community.
A 1,200 square foot house was sold one year ago for $270,000 and is located in a gated community.
A 1,500 square foot house was recently sold for $280,000 and is NOT located in a gated community.
An adjustment for location (-$5,000) was made. Which two comparables contributed to the adjustment?
Group of answer choices
Comparables 2 and 3
Comparables 3 and 4
Comparables 2 and 4
Comparables 1 and 2
Comparables 1 and 4
Comparables 1 and 3
Solved
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Ответ:
B
Explanation:
The Internal Rate of Return (IRR) is the profitability or the ability to generate revenues of the money that remains invested during the life of a proyect. It is also known as the discount rate or cost rate that makes the Net Present Value (NPV) equal to cero. When the NPV is greater than cero, then the proyect creates value ( it is attractive to investors) if it is less than cero, then the proyect destroys value and investors are going to loose money. If the NPV is equal to cero, then investors recover their investment but they do not obtain gains nor losses. The minimum rate of return is the one in which at least investors obtain the same amount ( in present value) of their investment; that is the internal rate of return (IRR).