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11 May 2026, 19:00
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Cash-on-cash return is the ratio of the money earned on an investment in the first year to the total monetary investment, and it is a popular metric by which to express the value of a real estate investment scheme. The higher the cash-on-cash return on an investment, the more likely it is to attract investors. Therefore, a real estate firm that either estimates a higher first year return or allows a lower initial investment requirement will increase the likelihood that an investor will select an investment from the firm over other investment options.
Which of the following, if true, would most strengthen the conclusion drawn above?
A. Increasing both the first year return on an investment and its initial investment requirement without changing its competitive position is possible.
B. For certain types of investors, high initial investment options are preferable to low initial investment options.
C. Investors’ perception of a real estate investment’s first year return is based on real estate firms’ estimates of the first year return on the firms’ investment schemes.
D. The competitive position of a real estate investment can be affected by such factors as marketing and the reputation of the firm offering the investment.
E. Competing real estate investments are often geared towards appealing to different segments of the population of investors.
Which of the following, if true, would most strengthen the conclusion drawn above?
A. Increasing both the first year return on an investment and its initial investment requirement without changing its competitive position is possible.
B. For certain types of investors, high initial investment options are preferable to low initial investment options.
C. Investors’ perception of a real estate investment’s first year return is based on real estate firms’ estimates of the first year return on the firms’ investment schemes.
D. The competitive position of a real estate investment can be affected by such factors as marketing and the reputation of the firm offering the investment.
E. Competing real estate investments are often geared towards appealing to different segments of the population of investors.
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11 May 2026, 20:38
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Main conclusion: A real estate firm can increase the likelihood of attracting investors by either (1) estimating a higher first-year return or (2) lowering the initial investment requirement.
Premises:
To strengthen, we need to support that changing these two factors actually influences investors’ decisions (i.e., they respond to reported returns and investment requirements in the way assumed).
Now eliminate:
A. Talks about possibility of increasing both return and investment requirement without changing position → irrelevant to conclusion.
B. Some investors prefer high initial investment → weakens idea that lower investment always helps → not support.
C. Investors base perception of returns on firms’ estimates → directly supports that increasing estimated return will influence investor choice → strengthens.
D. Mentions marketing and reputation → unrelated factor.
E. Talks about market segmentation → irrelevant to mechanism of return/investment effect.
Answer: C
Premises:
- Higher cash-on-cash return attracts investors.
- Cash-on-cash return depends on first-year return and initial investment.
To strengthen, we need to support that changing these two factors actually influences investors’ decisions (i.e., they respond to reported returns and investment requirements in the way assumed).
Now eliminate:
A. Talks about possibility of increasing both return and investment requirement without changing position → irrelevant to conclusion.
B. Some investors prefer high initial investment → weakens idea that lower investment always helps → not support.
C. Investors base perception of returns on firms’ estimates → directly supports that increasing estimated return will influence investor choice → strengthens.
D. Mentions marketing and reputation → unrelated factor.
E. Talks about market segmentation → irrelevant to mechanism of return/investment effect.
Answer: C
11 May 2026, 22:33
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cash on cash ratio = money earned on investment to total monetary investment.
its popular metrics to express the value of real estate investment scheme.
higher cash on cash return, the more likely it attracts investors.
conclusion- firm that either estimates a higher first year return or allows a lower initial investment requirement will increase likelihood that an investor will select an investment from firm over other investment options.
A. Increasing both the first year return on an investment and its initial investment requirement without changing its competitive position is possible.
not concerned about what else it possible from real estate firm to come up. reject.
B. For certain types of investors, high initial investment options are preferable to low initial investment options.
wrong comparison for investors. reject.
C. Investors’ perception of a real estate investment’s first year return is based on real estate firms’ estimates of the first year return on the firms’ investment schemes.
if investors are making any decision based on the first year return then conclusion saying providing higher first year return holds it ground. and this strengthen the conclusion. keep.
D. The competitive position of a real estate investment can be affected by such factors as marketing and the reputation of the firm offering the investment.
irrelevant. reject.
E. Competing real estate investments are often geared towards appealing to different segments of the population of investors.
irrelevant to argument, reject.
its popular metrics to express the value of real estate investment scheme.
higher cash on cash return, the more likely it attracts investors.
conclusion- firm that either estimates a higher first year return or allows a lower initial investment requirement will increase likelihood that an investor will select an investment from firm over other investment options.
A. Increasing both the first year return on an investment and its initial investment requirement without changing its competitive position is possible.
not concerned about what else it possible from real estate firm to come up. reject.
B. For certain types of investors, high initial investment options are preferable to low initial investment options.
wrong comparison for investors. reject.
C. Investors’ perception of a real estate investment’s first year return is based on real estate firms’ estimates of the first year return on the firms’ investment schemes.
if investors are making any decision based on the first year return then conclusion saying providing higher first year return holds it ground. and this strengthen the conclusion. keep.
D. The competitive position of a real estate investment can be affected by such factors as marketing and the reputation of the firm offering the investment.
irrelevant. reject.
E. Competing real estate investments are often geared towards appealing to different segments of the population of investors.
irrelevant to argument, reject.
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