1. To determine the "cash-on-cash" return, one would
A. divide the purchase price by the invested equity.
B. divide the purchase price by the NOI.
C. divide the cash flow before taxes by the invested equity.
D. divide the sale price after taxes by the invested equity.
2. Investors often use the DCF method of valuation,
A. because it is an easier valuation method than single-year ratios.
B. when they need a precise determination of value.
C. when the required internal rate of return (yield) is not known.
D. when the holding period of the property exceeds one year.