AGUSAN COLLEGES, INC.

BUTUAN CITY

MAED 204
February 14, 2022

I. Instructions: Read and Select the correct answer.

1. The expenditure methodology considers private sector, investor, and

government expenditures, as well as net exports when determining a
country's gross domestic product (GDP). Which of the following is not
true about the Income Approach?

a. The income approach, sometimes referred to as the income

capitalization approach.

b. The Income Approach is a type of real estate appraisal method

that does not allow investors to estimate the value of a property
based on the income the property generates.

c. The Income Approach is used by taking the net operating income

(NOI) of the rent collected and dividing it by the rate of
capitalization.
For items 2-3, read the paragraph below.

Scotland is a small country with only 100 inhabitants. Together, they

earn a total of USD 2,000,000 in wages and salaries, USD 500,000 in rent,
and USD 150’000 in interest payments. In addition to that, there are 10
companies located in Scotland. Let’s assume they make a profit of USD
4,000,000. Plus, they earn an additional USD 500,000 in rent and USD
350’000 in interest.

2. Based on the problem given above, what is the NTI of Scotland?

a. USD 7,500,000
b. USD 7,900,000
c. USD 8,620,000.00

3. Using the Income Approach Formula, what is the GDP of Scotland?

a. USD7,115,000
b. USD 7,415,000
c. USD 7,915,000

II. ESSAY: For items 4-5 write your opinion below.

4-5. If you were to be given a chance to have a superpower to raise the

economy in the Philippines, what would it be and why?

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Submitted by:
MARY GRACE D. SENDREJAS
MAED 204 Student

Submitted to:
ROMEO GIDUCOS, Ph.D.
Professor
Answer key:
1. B (The Income Approach is a type of real estate appraisal method
that does not allow investors to estimate the value of a property
based on the income the property generates.)
2. A (USD 3,820,000.00)
3. A (7,115,000)
4. -5 Answer may vary
Answer: If I were given a chance to have a superpower to raise the
economy of our country, it would be a superpower influence because
if you have much influence then you can easily achieve your goals
and accomplish it by simply using your influence and leveraging it to
the person whom you can ask for help.