CPV Asset Valuation Practice II study plan

Map the three approaches to value (income, market, cost) and write a one-paragraph decision rule for choosing each in a business valuation engagement

Compute a capitalization rate using the build-up method and the weighted average cost of capital, showing each input and its source

Build a five-year discounted cash flow model in a spreadsheet from a hypothetical set of financials, including terminal value under both the Gordon growth and exit multiple methods

Identify and apply the three levels of the fair value hierarchy to classify inputs in a sample valuation

Calculate and adjust valuation multiples (P/E, EV/EBITDA, EV/Sales) from a set of comparable company data, including normalization for non-recurring items

Analyze the difference between a controlling interest and a minority interest, and compute a discount for lack of control and a premium for control using the implied methods

Apply the guideline public company method and the guideline transaction method to the same subject company and reconcile the two indications

Outline the elements of a business valuation report that comply with the Uniform Standards of Professional Appraisal Practice (USPAP) and the AICPA Statement on Standards for Valuation Services (SSVS)

List the three classic approaches to machinery and equipment valuation (cost, market, income) and give one scenario where each is the most defensible

Compute reproduction cost new and replacement cost new for a piece of equipment, then apply physical deterioration, functional obsolescence, and economic obsolescence to reach a value indication

Distinguish between direct and indirect costs in a cost analysis, and calculate the appropriate installation and freight adjustments

Explain the role of the Machinery and Equipment Appraisers Association (MEAA) and the American Society of Appraisers (ASA) in setting equipment valuation standards

Identify the data sources used in equipment valuation, including auction results, dealer quotes, and manufacturer price lists, and assess their reliability

Apply the cost approach to a vehicle and to a piece of office equipment, documenting the source and date of each cost input

Define personal property and distinguish it from real property and intangible assets using at least three boundary cases

Calculate a leasehold improvement value and explain how trade fixtures are treated in a personal property appraisal

Describe the four Cs of diamond grading (carat, color, clarity, cut) and explain how each factor affects value

Differentiate natural, treated, and synthetic gemstones and state the disclosure obligations for each in an appraisal report

Apply the GIA diamond grading scale to a set of hypothetical stone descriptions and rank them by relative value

Identify the main precious metals (gold, platinum, silver, palladium) and calculate scrap value using current market prices and purity (karat) conversions

Explain the difference between replacement value and fair market value in jewelry appraisals and state when each is appropriate

Outline the three approaches to real property value and identify the data sources for each (comparable sales, income capitalization, cost new less depreciation)

Compute a gross rent multiplier and a direct capitalization rate from a set of comparable income properties

Describe the sales comparison approach adjustments (location, size, age, condition) and apply them to three comparable sales

Explain the concept of highest and best use and test a property against the four criteria (legally permissible, physically possible, financially feasible, maximally productive)

Identify the key elements of an appraisal review under USPAP Standard 3, including scope of work, completeness, and appropriateness of methods

Draft a review checklist for a residential appraisal report covering data verification, adjustment support, and reconciliation logic

Describe the appraisal management function, including engagement letters, fee agreements, and record retention requirements

Synthesize the six domains by building a one-page decision tree that routes a subject asset to the correct approach and standards

Complete a timed 60-question practice set across all domains and score at least 75%

Review all incorrect practice questions and write a corrected explanation for each

Revisit the weakest two domains identified by practice scores and complete two targeted drills per domain