Welcome to the Valos Valuation Quiz 1. On what day was the RICS Red Book Effective? December 31st, 2021 January 31st, 2022 January 1st, 2022 2. When would you use the Profit method of valuation? Where there is a ‘monopoly’ position and where the value of the property depends on the profitability. When the sum of the discounted cash flows of the project. Used to determine if an investment gives a positive return against a target rate of return. When the discount rate which produces an NPV of zero is applied to the asset’s cash flow. 3. What is the Red Book definition of Investment Value (worth)? “The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” “The value of an asset to the owner, or prospective owner for individual investment or operational objectives.” “The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing when the parties have acted knowledgeably, prudently and without compulsion.” Time’s up Share This Back to News & Insights
