Question

) The value of investment real estate

A) Is based on the future cash flows the deal will generate

B) Differs by individual investors due to differing hurdle rates amongst investors

C) Is determined by financial analysis, then often ultimately decided upon by measuring the riskiness of future cash flows

D) All the above

Answer 1

All the statement provided here are true as the value of real estate is based on all factors which Will include-

It may be based upon the the amount of cash flow discounting methods which advocates for discounting of future cash flows at the the present value using a discount rate.

Different real estates have different hurdle rates by Different investors as they expect different rate of return due to their diverse expectations from investment.

It can also be determined by the financial analysis which could be followed with measurements of future cash flows associated and their risk. It is a better approach for real estate valuation.

So, All three statements are true ,My answer will be

(D)All of the above