It is common for investors in real estate to use mortgage debt to help finance capital investment. The use of debt can have a profound impact on the expected cash flows for a particular property. Which of the following terms refers to cash flows that represent the property's income after subtracting any payments due to the lender?

Question

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Levered cash flows represent the property's income after subtracting any payments due to the lender. This takes into account the impact of using mortgage debt to finance the investment, which can affect the overall cash flow and return on investment. Unlevered cash flows, on the other hand, represent the property's income without taking into account any debt financing. Discounted cash flows and compounded cash flows are related to the time value of money and calculation of present and future values, but do not specifically relate to the impact of debt financing on cash flows.

It Is Common for Investors in Real Estate to Use