ARGUS Exam QUESTIONS | ACCURATE QUESTIONS AND DETAILED ANSWERS | GUARANTEED PASS | GRADE, Exams of Finance

Download ARGUS Exam QUESTIONS | ACCURATE QUESTIONS AND DETAILED ANSWERS | GUARANTEED PASS | GRADE and more Exams Finance in PDF only on Docsity! ARGUS Exam QUESTIONS | ACCURATE QUESTIONS AND DETAILED ANSWERS | GUARANTEED PASS | GRADED A | LATEST UPDATE 2024-2025 WITH 100+ QUESTIONS 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? - ANSWER Control panel 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. - ANSWER Analysis Within AE we can add in Non-Operating Expenses. Non-Operating expenses will fall below the Net Operating Income line jn the cash flow. They will also not be counted towards the value of the property. You can switch this feature on/off in the report options while in the cash flow report - ANSWER Non-Operating Expenses In the Property Reports - Cash Flow, a user has the option to change the "Report for" options. - ANSWER "Total Property" (default) will show all transactions within the model. "Assured and Speculative Income" will show all income broken into Assured And Speculative sections. "Assured Cash Flow" will show the assured portion of the Cash Flow. The tenant revenue section of the report will show assured income based on lease statuses set to contract or contract renewal. All non-tenant income and expense items will calculate the assured portion based on a pro rata share using the tenant income by lease status as the numerator. The "Calculate Assured Income" option needs to be checked in the modeling policies - general tab for this option to work. What is the extension of a property asset file in ARGUS Enterprise? - ANSWER .avux ______ saves the updates to the property asset model to the database. If a calculation has been performed, at also saves the latest calculation results. - ANSWER Save Property What should be selected as the 'How Input' method for the revenue or expense to be based on a percentage of other cash flow items in the property? - ANSWER % of Other CAM is $100,000 and is 50% fixed. Occupancy 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? - ANSWER a) $80,000 b) $87,500 Insurance is $80,000 and is 100% fixed. Occupancy is 85% a) What dollar amount should be entered in the Amount 1 Field? b) What will be the actual expense on the cash flow for Insurance? - ANSWER a) $80,000 b) $80,000 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 Amount 1 Varies window? - ANSWER Copy Column to End - ANSWER Fixed Steps should only be entered in this field if the step is to occur every lease anniversary at the same step amount. Any variation from that needs to be entered in the Rent Schedule by clicking on the Base Rent ellipsis. Market Leasing Information - ANSWER When entering an amount in the Months Vacant Override field, there will be no blending based upon renewal probability. ARGUS enterprise will return to using the entry in the Months Vacant field in the Market Leasing profile for subsequent rollovers. Access Report Options - ANSWER When in the reports tab, hitting F11 will automatically open the 'Report Options' window specific to the report that is currently active. Monthly Reporting - ANSWER In the Modeling Policies - General tab, there is an option to "Round Market Leases to start on the first day of the month" and this option is selected by default. A user can choose to start market leasing profile leases one day after a previous lease expires. Note: this option will only modify leases that terminate in the middle of the month. Add New Tenant Record - ANSWER To move a row entry up one row: CTRL + [ To move an entry down one row: CTRL + ] To move a row entry to the top of the list: CTRL + SHIFT + [ To move a row entry to the bottom of the list: CTRL + SHIFT + ] Leasing Costs - ANSWER Utilize CTRL + C and CTRL + V to quickly copy and paste information from one tenant to another Percentage Rent Input Fields - ANSWER The input fields for Percentage Rent will not be available unless the Property Type is Retail or Mixed Use including Retail Apply Retail Profil e - ANSWER Click the "Tenant Cash Flow" button located in the Grid Navigation bar to open the Tenant Cash Flow report for the currently selected tenant. This will open the report in split screen if you currently have just the Inputs view displayed. F9 (Print Interval Frequencies) - ANSWER Use the report icons in the top right-hand corner to toggle between the allowed print interval frequencies for reports. Use the shortcut key F9 to perform the action. Report Options - ANSWER The Report Options for the Market Leasing Summary Report allows for users to select which year of the Analysis is displayed. Option Lease Base Rent Unit - ANSWER When using "% of Market" with an Option Lease, AE will use only the renewal market rates for the Base Rent. Direct Edit - ANSWER A user can right-click on the Market-Leasing field and select "Direct Edit" or they can use the short cut keys "Alt + O" to open the Direct Edit window. Percentage Rent Calculation - ANSWER = [(Sales Volume) - (Breakpoint) x (Sales %)] the breakpoint is the threshold where the landlord begins to take percentage rent When you have a one-time increase, or an increase that happens at different increments or times, utilize the Fixed Steps column. - ANSWER False When entering an Available Date prior to the Start Date within the Rent Roll, ARGUS Enterprise will assume - ANSWER The space is available, but vacant until the Start Date The Analysis Date in January 2020. A tenants lease start date in March 2020. If we want to show the Lost Absorption / Turnover Rent for this tenant, what would be entered in the following fields? 1) Available Date field: 2) Start Date field: - ANSWER 1) January 2020 2) March 2020 The Lost Absorption / Turnover Rent being reported for the months prior to a lease start will appear on the individual Tenant Cash Flow / LPV report. - ANSWER False The % of Total Rental Revenue method is calculated by taking the Scheduled Base Rent + __________ - ANSWER CPI Increases The General Vacancy calculation frequency can be monthly or annually. T/F - ANSWER True Free Rent, Tenant Improvement and Leasing Commission categories can be created in the Market parent tab and applied in the Rent Roll or Market Leasing levels. T/F - ANSWER True When including Free Rent in the Leasing Commission Calculation, is it Added or Subtracted with the formula? - ANSWER Subtracted Actuals and Budget information can be viewed on a: a. Monthly Basis b. Quarterly Basis c. Semi-Annually Basis d. Annually Basis e. All of the Above - ANSWER e. All of the Above The Percentage Recoverable Field - Expense Groups - ANSWER The Percentage Recoverable field allows a user to apply a different recoverable percentage to an expense than what was originally entered on the Expenses tab. Note that changing the percentage recoverable entry for a group does not change the entry in the Recoverable % field on the Expense Screen. Recovered Amount Max Per Increase Limit Equation - ANSWER Year 2 Maximum Per Increase Limit = Year 1 Recoverable Amount x Allocation % x % Cap Apply Gross Up - ANSWER After changing the modeling policy for Gross Ups any recovery structure created from that point forward will default to that Gross Up percent. However, any recovery structure created before the modeling policy change will remain with the Gross Up % they had in the Recovery Structure grid. Expense Groups - ANSWER Within an Expense Group, individuals can have different Gross Up rates. By using the "Gross Up Override" field a user can apply different gross up amounts to individual expenses. Market Rent Categories - ANSWER Market Rent categories are useful in Template creation to help save time and reduce errors when setting up Market Rates In Use By Shortcut - ANSWER Shortcut Key to open the "In Use By" side panel is "Alt + I". If a category is "In Use" a user will not be able to delete it. Create a Free Rent Category - ANSWER There are 2 (two) How Input options to choose from. Relative Dates or Monthly Entries. If a User chooses "Relative Dates" the amount entered will be relative to the lease start date. If a user chooses "Monthly Entries" a user can enter in the specific amount of free rent a tenant will receive based on what Month/Year the lease commences. Annual Total Columns - ANSWER In Report Options, set "Print Annual Totals" to "No" to hide the Annual Total columns. Edit LC Timing - ANSWER By Including Free Rent, AE is subtracting Free Rent from the calculation. Rent Roll Incentives Field - ANSWER The "Incentives" field allows a user to link tenant specific expenses, like tenant credits, directly to the lease. Enter Property Purchase Price - ANSWER When running ARGUS Enterprise Powered by CLOUD via Citrix, click "Save Property' to see the updated values in the Purchase Information Section. Add Debt Financing - ANSWER In the "Seniority" field type a number between 1 and 30 to assign a priority to a loan with covenants modeled. Seniority order is used to specify the order the loans are paid off when modeling cash sweeps. You can assign the same number to multiple loans. If you have two loans with the same seniority, then the creation order on the grid determines seniority between them. Interest Rate - ANSWER Click the "Interest Rate" ellipsis to open the Rate Varies Popup Editor. This will allow a user to enter an interest rate that varies over time. Loan Timing - Amortize Start - ANSWER The "Amortize Start" field allows a user to enter in either the number of months after the loan start date or a specific date in which a loan will start amortizing. With "0" entered in the field the loan will pay interest and principal from the start. Loan Amortization Balloon - ANSWER The loan will balloon at the end of the analysis Valuation - Direct Capitalization - ANSWER The Results section in the Valuation - Direct Capitalization Window Will Display the calculated Direct Capitalization Results for the property. The results will include: Net Operating Income, Occupancy Gross UP Adjustment, NOI to Capitalize, Divided by Direct Cap Rate, and Direct Cap Value. Enter Property Resale - ANSWER Resale Calculation = NOI (12 Months after sale) / Cap Rate = Gross Sale Price Gross Sale Price - Adjustments = Net Sale Price Hold Period and Adjustments - ANSWER The "Hold Period" field allows a user to specify the hold period by selecting either "Length of Analysis", "Hold Years", or "Fixed Date". The last two options will activate their respective fields allowing a user to enter in the number of years or a specified date. Present Value - Enter Discount Rate - ANSWER In the "Increment Discount Rate" section a user can add/subtract each increment to adjust the current discount rate input. Next to each numeric text box, the adjusted rates are displayed corresponding to each item. In each text box, a user may enter a minimum value of -100% and a maximum value of 100%. Display Multiple Sales - ANSWER In the "Report Options" window a user can turn on "Display Multiple Sales" to see a range of resale cap rates compared to the range of Present Value rates. Select Export Directory - ANSWER Check the "Export to Single File" option to export all the property reports into a single Excel workbook. With the option unchecked, each property has its own workbook. View Report Package - ANSWER If connected to Argus Enterprise Powered by CLOUD Citrix install, a user will close out of the window an navigate to the directory to open the files to view report package. 10. Calculate the Property Resale Value of a building with Analysis Length: 5 Years Calc Method: CAP NOI (12 Months After Sale) Cap Rate 5.00 % Year 6 NO: $1,000,000 Year 5 NOI: $750,000 a. $37,500 b. $50,000 c. $15,000,000 d. $20,000,000 - ANSWER d. $20,000,000 11. Only one (1) debt note can be entered into ARGUS Enterprise a. True b. False - ANSWER b. False 12. 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 - ANSWER a. 10 Years 13. When calculating a Market Leasing profile with the Upon Expiration set to Vacate, ARGUS Enterprise will a . Assume a 0.0 % renewal probability b . Assume a 100.0 % 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 - ANSWER a . Assume a 0.0 % renewal probability 14. 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 - ANSWER a. Market 15 , with a 60.0 % 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 $20.00/SF and Renewal TI Rates are $10.00/SF? a. $10.00/SF b. $14.00/SF c. $15.00/SF d. $20.00/SF - ANSWER b. $14.00/SF 16. 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 50.0 % Market Inflation Rate 5.0 % New Market Rent (Year 1): $100.00/SF/Year Renewal Market Rent (Year 1): $75.00/SF/Year a. $75.00/SF/Year b. $78.75/SF/Year c. $87.50/SF/Year d. $91.88/SF/Year - ANSWER b. $78.75/SF/Year 7. If a Tenant's Upon Expiration is set to Month to Month, how many months of downtime will appear on the Tenant Cash Flow? a. 0 Months c. The blended average of the Months Vacant entered into the assigned Market Leasing profile b. The number of Months Vacant entered into the assigned Market Leasing profile - ANSWER a. 0 Months downtime will occur if a tenant was set to Market upon rollover? 8. The weighted average is 6.4 for the Months Vacant in a Market Leasing profile. How many months of a. 0 Months b. 6 Months c. 6.4 Months d. 7 Months - ANSWER b. 6 Months 19 , which of the following is NOT included in the default Leasing Commissions Fixed % calculation ? a. Base Rent b. Fixed Steps c. Free Rent d. Recoveries - ANSWER d. Recoveries 20. Use the following assumptions to calculate the Percentage Rent: Tenant Size: 10,000 S Building Size 100,000 SR Tenant Annual Rent: $50,000 Annual Sales Amount: $10,000,000 Sales 96 : 5 % Breakpoint Zero a. $50,000 b. $450,000 c. $500,000 d. $1,000,000 - ANSWER c. $500,000 21. is a solution for consolidating and reporting property, tenant, portfolio, and scenario information contained within ARGUS Enterprise a. Analysis Reporting b. Property Cash Flows c. Sensitivity Assumptions d. Portfolio Reporting - ANSWER d. Portfolio Reporting 22. Properties can be filtered, sorted and grouped in the Portfolio interface. a. True b. False - ANSWER a. True 23. U sers can define a varying building area over time by clicking the Building Area ellipsis a. True b. False - ANSWER a. True 24. The tab allows users to upload numerous files to centralize the property documents a. Property b. Area Measures c. Attachments d. Classifications - ANSWER c. Attachments 25. How many years can an analysis length be? a. 1 Year b. 40 Years C. 100 Years d. There is no limit - ANSWER C. 100 Years 26. The Report Options button allows a user to change the Print Interval setting for specific reports a. True b. False - ANSWER a. True 27. 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 - ANSWER c. Both Tenants entered in the Rent Roll and Space Absorption 28. Which of the following is NOT a Property Report? a. Cash Flow b. Executive Summary c. Assumptions d. Tenant Summary - ANSWER d. Tenant Summary 29. The Property Reports- Assumptions displays what information? a. Market Leasing Profiles b. Inflation Rates c. General Vacancy Rates d. All the Above - ANSWER d. All the Above 30. Calculate Tenant A's recovery amount using the following assumptions: Recovery Structure: Net Tenant A Size: 2,500 SF Building Area: 50,000 SF Operating Expense Total: $100,000 a. $125 b. $2,500 c. $5,000 d. $50,000 - ANSWER c. $5,000 31. Calculate Tenant B's recovery amount using the following assumptions: Recovery Structure: Net Tenant B Size: 10,000 SF Building Area: 50,000 S Operating Expense Total: $1,500,000 a. $10,000 b. $50,000 c. $150,000 d. $300,000 - ANSWER d. $300,000 32. 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 Current Year Expenses: $1,500,000 a. $10,000 b. $50,000 c. $150,000 d. $500,000 - ANSWER b. $50,000 33. 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 Current Year Expenses: $1,500,000 a. $10,000 b. $100,000 c. $150,000 d. $500,000 - ANSWER b. $100,000 To change the Report Print Interval setting, click the ________ button - ANSWER Report Options A portfolio may have ______ chart of accounts applied at a time - ANSWER One True or False Within AE, it is possible to copy items from Excel into AE - ANSWER True True or False Non-Operating Expenses will fall below the NOI line on the Cash Flow - ANSWER True A property with an analysis start date of January 2014 has Market Rent for both new and renewal tenants at $20.50/SF/Year. If a tenant rolls to market and a new lease begins in September 2018, what rent would ARGUS Enterprise use for the speculative tenant? Assume Market Rent Inflation is 4% beginning in the second year of the analysis. - ANSWER $23.98 True or False Entering in a property address will allow a user to access a map of the location in AE. - ANSWER False When will the CPI Increase be applied to a tenant when the selected method is "Each Lease Anniversary"? - ANSWER At the beginning of each lease year starting in the second year True or False When leases roll to the Market Leasing profile, by default the rents do not inflate during the rollover term - ANSWER True True or False To adjust the Base Rent when you have a one-time increase, or increases that happen at different increments, use the Fixed Steps Unit column. - ANSWER False (You Use the detail base rent) Using the information below, calculate the amount that is eligible for recovery when using Gross Ups: Utilities Expense: $16,500 % Fixed: 35% % Occupied: 82% % Grossed Up: 90% - ANSWER $15,427.50 Which of the following are levels offered with the Chart of Accounts? -Parent/Header -Cashflow/GL Account -Detail/Job Costs -Revenue Costs - ANSWER -Parent/Header -Cashflow/GL Account -Detail/Job Costs