CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

Four uses have been identified for a property.

What is the implied land value?
A. $1,000,000.
B. $444,444
C. $3,500,000.
Explanation: The retail project would be the highest and best use.

It is the expected use of land and its future income that determines its value. As developers and investors envision what will bring the highest property value, competition for site and prices paid based on expected site developments will ultimately determine land values.

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