1. According to the expectations hypothesis, what is the market’s expectation of the one-year interest rate three years from now?
2. Given the following information, calculate the Net Present Value for this investment: First-year NOI: $18,775 with an annual growth rate of 7%; Purchase Price = $ 520,000; Equity Investment = 20%; Discount Rate = 12%; BTER = $ 840,000
A. $ 420,298
B. $ 553,298
C. $ 449,298
D. $ 520,298
3. A chunk of ice fell from the sky damaging Theo’s house. The FMV of the house before the event was $350,000, and after FMV was $250,000. Insurance is expected to cover all but $15,000 of this loss; however, as of the end of the year, the insurance proceeds had not yet been received. Theo's AGI is $120,000. How much should Theo take as a personal casualty loss deduction in this year?
A. $2,900
B. $3,000
C. $15,000
D. $14,900
E. None of the other answers is correct