ASC ASC Sensitivity and Scenario Analysis

Question 1

In ARGUS, a sensitivity analysis is primarily used to:

Accepted Answer

Measure how changes in key assumptions affect investment returns

Answer

Calculate the property's tax assessment value

Answer

Automate lease renewal probability calculations

Answer

Determine individual tenant credit ratings

Question 2

Which output metric is most commonly tested in an ARGUS sensitivity analysis?

Accepted Answer

IRR or NPV

Answer

Gross building area

Answer

Lease expiration schedule

Answer

Tenant improvement cost per square foot

Question 3

In ARGUS, a scenario differs from a simple sensitivity analysis in that:

Accepted Answer

Scenarios allow multiple assumptions to change simultaneously under named conditions

Answer

Scenarios only adjust a single variable at a time

Answer

Scenarios are limited to market rent adjustments only

Answer

Scenarios cannot affect the hold period assumption

Question 4

What is a base case in ARGUS scenario modeling?

Accepted Answer

The most likely expected outcome used as the benchmark

Answer

The worst-case assumption set for stress testing

Answer

The minimum required return threshold for investment

Answer

The initial acquisition price scenario

Question 5

In ARGUS sensitivity analysis, varying the exit cap rate primarily affects:

Accepted Answer

The reversion (sale) value of the property

Answer

Annual rental income from in-place leases

Answer

Operating expense reimbursements

Answer

Tenant improvement allowances

Question 6

Which ARGUS feature allows you to display multiple scenario results side by side for comparison?

Accepted Answer

Scenario manager and comparison view

Answer

Lease rollover report

Answer

Expense reconciliation table

Answer

Rent roll export function