Questions from General Investment


Q: What is the net present value? What is the IRR?

What is the net present value? What is the IRR? How are the NPV and IRR used to make real estate investment decisions?

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Q: List and briefly describe the five steps in the framework for real

List and briefly describe the five steps in the framework for real estate investment analysis.

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Q: Define depreciation from a tax viewpoint. Explain why it is said

Define depreciation from a tax viewpoint. Explain why it is said to offer tax shelter potential. What real estate investments provide this benefit? Explain.

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Q: Explain why, despite its being acceptable on the basis of NPV

Explain why, despite its being acceptable on the basis of NPV or of IRR, a real estate investment still might not be acceptable to a given investor.

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Q: Briefly describe the basic structure and investment considerations associated with a real

Briefly describe the basic structure and investment considerations associated with a real estate investment trust (REIT). What are the three basic types of REITs?

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Q: What are other tangibles? Briefly describe the conditions that tend to

What are other tangibles? Briefly describe the conditions that tend to cause tangibles to rise in price.

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Q: What are the three basic forms of tangible investments? Briefly discuss

What are the three basic forms of tangible investments? Briefly discuss the investment merits of tangibles. Be sure to note the key factors that affect the future prices of tangibles.

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Q: How does real estate investment differ from securities investment? Why might

How does real estate investment differ from securities investment? Why might adding real estate to your investment portfolio decrease your overall risk? Explain.

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Q: Assume you purchased a share of stock in Verizon communications at the

Assume you purchased a share of stock in Verizon communications at the beginning of 2017 for $54.58. A year later the stock was worth $53.53, but during 2017 it paid a dividend of $2.32. Calculate the...

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Q: Describe the different ways in which one can hold gold and other

Describe the different ways in which one can hold gold and other precious metals as a form of investing. Discuss gemstone investments in terms of quality, commissions, and liquidity

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