ARGUS Enterprise Certification Exam Review Questions Over 100 with 100% Correct Answers, Exams of Business Economics

Download ARGUS Enterprise Certification Exam Review Questions Over 100 with 100% Correct Answers and more Exams Business Economics in PDF only on Docsity! ARGUS Enterprise Certification Exam Review Questions Over 100 with 100% Correct Answers Latest Update 2024 1- (T/F) Once a property asset type is selected it cannot be changed - ✔✔False. In the DCF version you cant but in enterprise the asset type CAN be changed after its created 1- (T/F) The analysis begin date defaults to the current month and year - ✔✔True. and 100 years is the longest analysis period 1- Which section in the navigation pane allows users to update a variety of different settings ranging from managing users to data import validation rules to report settings? - ✔✔control panel 1- Which of the portfolio application tabs is best described by the following statement? This application allows users to create and view analytical charts and graphs based on a combination of properties from the portfolio - ✔✔analysis 2- What is the extension of a property asset file in argus enterprise? - ✔✔.avux 2- ________ saves the updates to the property asset model to the database. If a calculation has been performed, it also saves the latest calculation results - ✔✔save property (you do this under property view) 2- what should be selected as the 'how input' method for the revenue or expense to be based on a percentage of other cash flow line items in the property? - ✔✔% of other. example- management fee as % of effective gross revenue 2- Common area maintenance is $100,000 and is 50% fixed. Occupany is 75%. A. What dollar amount should be entered in the amount 1 field? B. What will be the actual expense on the cash flow for CAM? - ✔✔A. 100,000 B. 87,500 work for B: (expense amount* % fixed) + (expense amount * % variable * % occupied) (100,000 * .5) + (100,000 * .5 * .75) = 87,500 2- Insurance is $80,000 and is 100% fixed. Occupancy is 85%. A. What dollar amount should be entered in the amount1 field? B. What will be the actual expense on the cash flow for insurance? - ✔✔A. 80,000 B. 80,000 2- To replicate a value in a specific month of each year during the project for a specific expense, you must click which button in the Amount1 varies window? - ✔✔copy column to end 3- What is the Market rent in 2025? relevant info from book (pg 47): market rent in 2022 is 15 market inflation rate is 5% in 2023 and 2024, then it is 3% in 2025, 2026 and 2027 - ✔✔17.03 3- What is the cpi inflation rate in 2024 relevant info from book (pg 47): market rent in 2022 is 15 cpi inflation rate is shown across the board as 0% - ✔✔0.00% 3- When calculating a market leasing profile with the upon expiration set to renew, enterprise ________ - ✔✔assumes a 100% renewal 3- (T/F) The upon expiration field within the market leasing profile allows us to select any overrides for past terms - ✔✔False 4- (T/F) When you have a one time increase, or an increase that happens at different increments or times, utilize the fixed steps unit column - ✔✔False 5- What will tenant A pay in reimbursements in 2017 if they have a 2016 base year stop and all opex are included except the real estate taxes? info: tenant A size= 20,000 property size= 25,000 total opex 2016= 404,703 res taxes 2016= 80,000 total opex 2017= 466,109 res taxes 2017= 82,400 - ✔✔((2017 total opex- res taxes) - (2016 total opex - res taxes)) * (tenant size/ property size) (466109-82400) - (404703-80000) * (20,000/25,000) =47,204.80 5- What will tenant A pay in reimbursements in 2018 if the reimbursement method is net and all operating expenses are included in the recovery? info: 2018 total opex= 482,710 tenant A size= 20,000 property size= 25,000 - ✔✔2018 total opex * (tenant size/ property size) 482,710 * (20,000/25,000) 386,168.00 6- (T/F) Free rent, tenant improvement and leasing commission categories can be created in the market parent tab and applied in the rent roll or the market leasing levels - ✔✔true 6- when including free rent in the leasing commission calculation, is it added or subtracted within the formula? - ✔✔subtracted 6- By default, when are leasing commisssions paid within argus enterprise? - ✔✔the first month of the first lease year 6- What is the default free rent formula - ✔✔base rent+ fixed steps + cpi 6- By default, when is free rent given within argus enterprise? - ✔✔the first month(s) of the lease 7- The gross sale price is calculated by taking the NOI to capitalize and dividing it by the __________, when using cap NOI (12 months after sale) - ✔✔cap rate 7- (T/F) a user can change the hold length for the property resale by selecting either hold years or a fixed date - ✔✔true 7- Calculate the resale value of the building using the following assumptions resale method= capitalize NOI cap rate= 6.5% NOI= 784,567 selling costs= 3% adjusted gross - ✔✔(NOI/ cap rate) - ((NOI/ cap rate) * selling cost %) (784,567/6.5%) - ((784,567/6.5%) * 3%) $11,708,154 7- parameters for the discount rate change interval on the IRR matric report can be changed in the ____________ tab? - ✔✔assumptions 7- Within the investments tab, the _________ tab is used to calculate debt notes outside of the AE system - ✔✔other debt 7- (T/F) Argus enterprise can have a different term length for amortization and the loan - ✔✔true 7- (T/F) Enter other debt information into the valuations tab - ✔✔false 8- (T/F) Each time a filter is activated, the formula at the bottom of the screen is updates. to remove the filter, click the X to the left of the filter formula - ✔✔true 9- ______________ is a solution for consolidating and reporting property, tenant, portfolio and scenario information contained within the Argus data warehouse - ✔✔portfolio level reporting 9- (T/F) Sensitivity analysis allows you to create scenarios and make edits to an individual property or all the properties within your portfolio simultaneously - ✔✔true 10- (T/F) If actuals and budget data is entered manually, further updates can be made on the data. if actuals and budget data is imported in from a third (3rd) party system, or by using XL4ADW, manual updates cannot be made - ✔✔true 10- actuals and budget information can be viewed on a: - ✔✔all of the above! -monthly basis -quarterly basis -semi annually basis -annual basis ARGUS Enterprise merges three industry standard solutions: ARGUS Valuation - DCF , ARGUS Asset Management, and ARGUS Valuation - Capitalization A) True B) False - ✔✔A) True In ARGUS Enterprise you can utilize shortcut keyboard commands to navigate within certain sections of the program. A)True B) False - ✔✔A) True In AE, a user can add over 100 properties into a portfolio. A)True A) $0 B) $6,500 C) $7,800 D) $13,000 - ✔✔C) $7,800 Assuming 0.0% occupancy, calculate the Vending Machine revenue in Year 1 of the analysis. A) $0 B) $6,500 C) $7,800 D) $13,000 - ✔✔A) $0 Assuming a 100.0% occupancy, calculate the Vending Machine revenue in Year 1 of the analysis. A) $0 B) $6,500 C) $7,800 D) $13,000 - ✔✔D) $13,000 Use the following data for question 15: $60,000 in March 2021 Inflation 3.0% in 2019 and 2020, No Inflation after that What is the Capital Expense amount that will appear on the Cash Flow? A) $60,000 B) $61,800 C) $65,564 D) $63,654 - ✔✔D) $63,654 Free Rent, by default, kicks in at the beginning of the ______. A) Analysis Date B) Tenant's Lease Start Date C) Tenant's Lease Available Date D) None of the above - ✔✔B) Tenant's Lease Start Date The default recovery structure in ARGUS Enterprise is _____. A) Base Year Stop B) Net C) Fixed Amount D) None - ✔✔B) Net The Available Date column in the Tenants - Rent Roll, represents the start of the tenant's lease. A) True B) False - ✔✔B) False By default, Tenant Improvements and Leasing Commissions are paid at the start of the tenant's lease. A) True B) False - ✔✔A) True The Upon Expiration field within the Market Leasing profile allows users to select a different Market Leasing profile to be used after the first Market Leasing term is over. A) True B) False - ✔✔A) True Contract Renewal: A) Utilizes the Renew Market Leasing profile terms. B) Utilizes the New Market Leasing profile terms. C) Inserts a new contract lease into the Rent Roll. D) None of the above. - ✔✔C) Inserts a new contract lease into the Rent Roll The Inflation rates are displayed on which report? A) Cash Flow B) Market Pricing C) Lease Audit D) Property Summary - ✔✔D) Property Summary Which report displays New Market, Renewal Market and Weighted Average results? A) Market Pricing Report B) Calculation Review Details Report C) Assumptions Report D) None of the Above. - ✔✔C) Assumptions Report When your resale calculatioon is set to CAP NOI (12 months after sale), which year's NOI will be used when analyzing a 6 - year analysis? A) 1st 2016 - $314,227 2019 - $ 407,746 2017 - $376,252 2020 - $ 415415 2018 - $410,713 2021 - $ 404, 263 Total NOI - $2,328,617 Resale Cap rate of 10% Adjustments of 3% Assuming a sale date of December 2020, what will be the net proceeds from sale if we have a resale calculation that capitalizes the NOI 12 months after sale? (rounded to the nearest dollar) A) $3,921,351 B) $4,029,526 C) $4,042,630 D) $4,154,150 - ✔✔A) $3,921,351 Assuming a sale date of December 2020, what will the net proceeds from ale if we have a resale calculation that capitalizes the NOI of the sale year? (rounded to the nearest dollar) A) $3,921,351 B) $4,029,526 C) $4,042,630 D) $4,154,150 - ✔✔B) $4,029,526 When using an Available date that is before the Start date, the loss in potential rent (Base Rental Revenue) can be shown on which report? A) Lease Audit B) Tenant Cash Flow C) Executive Summary D) Recovery Audit - ✔✔A) Lease Audit _________ is used in retail properties where tenants are expected to pay a percentage of their sales to the property owner. A) CPI B) Percentage Rent C) Step Rent D) None of the above. - ✔✔B) Percentage Rent What is the default calculation formula for Chargeable Sales? A) Base Rent / Sales % B) Chargeable Sales x Sales % C) Sales % x Sales Volume D) Sales Volume - Breakpoint - ✔✔D) Sales Volume - Breakpoint Calculate the General Vacancy Loss using the following assumptions: - Potential Gross Revenue: $800,000 - Absorption & Turnover Vacancy: $20,000 - Calculation: 5% of Potential Gross Revenue A) $20,000 B) $21,000 C) $40,000 D) $41,000 - ✔✔B) $21,000 Additional principal payments can be factored into the loan computations? A) True B) False - ✔✔A) True While running a 7-year analysis on a property with a 30-year debt note in ARGUS Enterprise, the note will _______ at the end of the projection. A) Amortize B) Ballon C) Delete D) Mature - ✔✔B) Balloon After changing the modeling policy for Gross Ups, any Recovery Structure already created will default to the Gross Up percentage in the Modeling Policies window. A) True B) False - ✔✔B) False The default formula for Leasing Commissions is : A) Base Rent + CPI - Step Rent B) Base Rent + Step Rent + Free Rent - CPI C) Base Rent + CPI D) Base Rent + Step Rent - Free Rent - ✔✔D) Base Rent + Step Rent - Free Rent To indicate that an expense should not be included in the cash flow projection nor used in the calculation of the NOI, select ________. A) % of Other B) Ref Acct C) Memo D) HTML - ✔✔D) HTML T/F Once the Budget and/or Actuals have been imported into AE from a 3rd party system, manual adjustments cannot be made in the Budget and/or Actuals tab. - ✔✔True Which of the following is NOT a level offered within the Charts of Accounts section? A. Header B. Account C. Sub-Account D. Detail - ✔✔C. Sub-Account Which of the following is NOT a Classification type in AE? A. System B. Property C. Region D. Tenant - ✔✔C. Region T/F Users in AE can have permissions assigned to them at the Portfolio, Scenario, and Property Level - ✔✔True Which General Vacancy calculation is found by adding the Total Tenant Revenue + Total Other Income? A. Annual Amount B. % of Potential Gross Revenue C. % Total Rental Revenue D. % of Total Tenant Revenue - ✔✔B. % of Potential Gross Revenue T/F Both Positive and Negative inflation rates can be entered into AE. - ✔✔True What is the extension of a property asset file in AE? A. .sf B. .aeix C. PISCES D. .avux - ✔✔D. .avux Which Valuation tab's primary purpose is to determine the current value of the property? A. Assumptions B. Direct Capitalization C. Property Resale D. Present Value - ✔✔B. Direct Capitilization T/F It is possible to have multiple Property Resale Calculations active for a single property. - ✔✔False Calculate the Property Resale Value of a building with: Analysis Length: 5 Years Calc Method: CAP NOI (12 Months after Sale) Year 5 NOI: $750,000 Year 6 NOI: $1,000,000 Cap Rate: 5.00% A. $37,500 B. $50,000 C. $15,000,000 D. $20,000,000 - ✔✔D. $20,000,000 T/F Only one debt note can be entered in AE. - ✔✔False If the analysis is 10 years long and you have a 30-year debt note, when will it balloon? A. 10 Years B. 11 Years C. 15 Years D. 30 Years - ✔✔A. 10 Years When calculating a Market Leasing profile with the Upon Expiration set to Vacate, AE will _____ A. Assume a 0% renewal probability B. Assume a 100% renewal probability C. Assume the space goes dark and reabsorbs the area D. Ignores the Market Leasing profile and inserts a new Contract lease line - ✔✔A. Assume a 0% renewal probability Which of the following Upon Expiration is described by the following definition: Renewals will be processed based on the renewal probability in the Market Leasing profile (weighted average calculations of new and renewal rates for market rents, tenant improvements, leasing commissions, etc)? A. Market B. Renew C. Option D. Month to Month - ✔✔A. Market With a 60% Renewal Probability, what Tenant Improvement rate will be calculated if a tenant rolls to Market in the first year of the analysis and New TI Rates are $20/SF and Renewal TI Rates are $10/SF? A. $10/SF B. $14/SF C. $15/SF D. $20/SF - ✔✔B. $14/SF Calculate the Market Rent Rate in Year 2 using the following information for a tenant that is set to "Renew" in the Upon Expiration field: Renewal Probability: 50% Market Inflation Rate: 5% New Market Rent (Year 1): $100SF/Year A. 1 Year B. 40 Years C. 100 Years D. There is no limit - ✔✔C. 100 Years T/F The Report Options button allows a user to change the Print Interval setting for specific reports. - ✔✔True The Tenant Reports - Lease Summary displays the following: A. Only Tenants entered in the Rent Roll B. Only Tenants entered in Space Absorption C. Both Tenants entered in the Rent Roll and Space Absorption - ✔✔C. Both Tenants entered in the Rent Roll and Space Absorption Which of the following is NOT a Property Report? A. Cash Flow B. Executive Summary C. Assumptions D. Tenant Summary - ✔✔D. Tenant Summary The Property Reports - Assumptions displays what information? A. Market Leasing Profiles B. Inflation Rates C. General Vacancy Rates D. All of the Above - ✔✔D. All of the Above Calculate Tenant A's recovery amount using the following assumptions: Recovery Structure: Net Tenant A Size: 2,500 SF Building Area: 50,000 SF Operational Expense Total: $100,000 A. $125 B. $2,500 C. $5,000 D. $50,000 - ✔✔C. $5,000 Calculate Tenant B's recovery amount using the following assumptions: Recovery Structure: Net Tenant B Size: 10,000 SF Building Area: 50,000 SF Operating Expense Total: $1,500,000 A. $10,000 B. $50,000 C. $150,000 D. $300,000 - ✔✔D. $300,000 Calculate Tenant C's recovery amount using the following assumptions: Recovery Structure: Base Year Stop Tenant C Size: 10,000 SF Building Area: 100,000 SF Base Year Stop Amount: $1,000,000 Operating Expense Total: $1,500,000 A. $10,000 B. $50,000 C. $150,000 D. $500,000 - ✔✔B. $50,000 Calculate Tenant D's recovery amount using the following assumptions: Recovery Structure: $10.00 Fixed Amount/Area Tenant D Size: 10,000 SF Building Area: 100,000 SF Operating Expense Total: $1,500,000 A. $10,000 B. $100,000 C. $150,000 D. $500,000 - ✔✔B. $100,000 Which Recovery would you select to enter in a tenant that pays their Net Pro-Rate Share of all expenses over a specified stop amount? A. Net B. Fixed Amount C. Fixed Amount / Area D. Stop Amount - ✔✔D. Stop Amount T/F Base Rent, Fixed Steps and CPI increases all show up on their own lines on the Property Cash Flow Report. - ✔✔False T/F Property level detail can be separated out in Portfolio Level Reports. - ✔✔True