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Effect on discounted cash flow model

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Reference no: EM133227532

Question 1. An investor and a real estate developer would have the same perspective on the due diligence process.

A. True

B. False

Question 2. The due diligence process is an attempt to overcome the risks inherent in the assumptions that a real estate developer or investor has to make when preparing a cash-flow pro forma and using those cash flows as an input into the discounted cash flow (DCF) model.

A. True

B. False

Question 3. Tenants who tend to pay rent late have no effect on the discounted cash flow (DCF) model, as long as they pay eventually.

A. True

B. False

Reference no: EM133227532

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