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

Quizplus · Accepted Answer

Levered cash flows refer to cash flows that take into account the impact of using mortgage debt on the property's income. They represent the property's income after subtracting any payments due to the lender. Unlevered cash flows, on the other hand, do not take into account any debt financing and represent the property's income before any debt payments. Discounted cash flows and compounded cash flows refer to methods of valuing investments and are not directly related to the impact of debt on a property's cash flows.

It Is Common for Investors in Real Estate to Use