Skip to main content

Proforma calculation

In a basic proforma equation to test the economic viability of a potential development project, the sum of hard costs and soft costs equals total cost, which will incorporate total interest on the construction loan. The total cost is figured into an annualized expense amount toward mortgage retirement. net income minus total expense equals profit (or percentage of equity). Which of the following would be considered in calculating "soft costs"? Choose 3
A. Legal expenses/accounting
B. Marketing fees
C. Cost of construction - Circulation areas (typ. 20%)
D. Architect/Engineer fee
E. Real estate taxes
F. Management office expense

AnswerA, B, D are soft costs. C is a hard cost (normally only construction cost and land acquisition). E, F are (operating) expenses.

ARE 4.0 exam prep: CDS

Comments

Post a Comment

Try These Too!

Moisture content in wood

The amount of shrinkage, weight, strength, and withdrawal resistance of nails is affected by the moisture content in wood. Wood that is grademarked kiln dry has a maximum moisture content of: A. 15% B. 19% C. 25% D. 30% Answer A. 15%. Dry lumber moisture content cannot exceed 19%. ARE 4.0 exam prep: SS
Post a Comment
See the answer »

Cantilevered beam

The bending moment in a cantilevered beam is negative. Which of the following statements are true? A. the top fibers are in compression B. the bottom fibers are in compression C. rebar placement should be either at the top or the bottom D. gravity loads are not a factor for negative moment Answer B. the bottom fibers are in compression in a cantilevered beam, so top fibers are in tension which requires rebar placement at the top to resist tension. ARE 4.0 exam prep: SS
Post a Comment
See the answer »

Important Factors Classification

According to IBC's classification of buildings and other structures for importance factors, which of the following occupancy categories include hospitals and other health care facilities having surgery or emergency treatment facilities? A. I B. II C. III D. IV Answer IV. gives an importance factor I of 1.5 for seismic, 1.2 for snow, 1.15 for wind. These buildings are designed as essential facilities, representing the greatest hazard to human life in the event of failure. ARE 4.0 exam prep: SS
Post a Comment
See the answer »