1. An apartment building is estimated to have a market value of $10,000,000. If 100% occupied, total rent payments would equal $2,000,000. However, the building has a 5% vacancy loss. Operating expenses are $350,000. What is the net income multiplier (NIM)?

6.67

0.20

5.26

6.45

2. Which of the following statements best describes the cost approach for estimating market value:

A) The appraiser estimates the construction cost of the improvement and adds it to the value of the land.

B) The appraiser formulates his estimate of the market value based upon the analysis of the sales price and the nature of comparable properties.

C) The appraiser generates a stream of future income payments to the owner, and uses this as an estimate of value.

D) The appraiser identifies several comparable properties and divides their sales price by rent revenues.