Which of the following income capitalization techniques is based on the principle that buyers will not...
Which of the following income capitalization techniques is based on the principle that buyers will not pay more for a property than the present value (PV) of all future Net Operating Incomes (NOI)?
A. Multiple Choice Direct capitalization method
B. Effective gross income method
C. Potential gross income method
D. Discounted cash flow method
Homework Answers
Ans D. Discounted cash flow method
Discounted cash flow method capitalization techniques is based on the principle that buyers will not pay more for a property than the present value (PV) of all future Net Operating Incomes (NOI)
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