Question

In making single-asset real estate investment decisions, the first pass often involves calculating a series of returns, ratios, and multipliers. Which of the following is often cited as a limitation associated with this type of analysis?
a. They are difficult to calculate.
b. They are complex to understand.
c. They fail to incorporate cash flows beyond the first year of the analysis.
d. They are rarely used by industry professionals.

Answer 1

Answer:

C. They fail to incorporate cash flows beyond the first year of the analysis.