5. Urban Economics

Sustainability — Quiz

Test your understanding of sustainability with 5 practice questions.

Practice Questions

Question 1

If a property yields a perpetual net operating income of \100,000, its terminal value under DCF at a discount rate of 8\% is \$1,250,000. If the discount rate is increased to 8.75\% to reflect additional ESG risk, what is the new terminal value and approximate percentage change from the original value?

Question 2

An investor undertakes an energy efficiency retrofit costing \200,000 that generates annual cost savings of \$20,000 for 15 years. If the discount rate is 6\%, what is the net present value (NPV) of the project? (Round to the nearest dollar.)

Question 3

A building has embodied carbon emissions of 600 tonnes CO\_2e and a total floor area of 25,000 m\^2. What is the embodied carbon intensity in kg CO\_2e/m\^2?

Question 4

Which GHG Protocol emission scope includes direct on-site combustion emissions from a building's heating system?

Question 5

Which traditional property valuation approach is best suited to integrate a sustainability-driven value premium directly into a property's estimated market value?