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Condo A is more liquid than condo B. This means that Condo A will be easier...

Condo A is more liquid than condo B. This means that Condo A will be easier to sell than Condo B.

True or False: Cash returns never change over the course of a property’s life.

True or False: $100 in five years is worth less than $100 tomorrow.

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Answer #1

1.True.

Liquidity is the ease at which an asset can be converted into cash, if condo A is easier to sell than Condo B, it can be said that Condo A is more liquid than Condo B.

2.False.

Cash returns can change if certain factors such as rental value, operating expenses etc incur a change.

And this change can be either way.

3.True.

Because money has certain time value, the value of $100 tomorrow will be greater than value of $100 five years hence.

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