Two buildings have just sold in the same office park as your property. All three properties were built by the same developer at the same time. Which valuation method will give you the best indication of the value of your building? a) DCF b) Comparable Property c) Capitalization Rate d) Replacement Cost
Two buildings have just sold in the same office park as your property. All three properties were built by the same developer at the same time. Which valuation method will give you the best indication of the value of your building? a) DCF b) Comparable Property c) Capitalization Rate d) Replacement Cost
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Two buildings have just sold in the same office park as your property. All three
properties were built by the same developer at the same time. Which valuation method will give you the best indication of the value of your building?
a) DCF
b) Comparable Property
c) Capitalization Rate
d) Replacement Cost
Please ensure accuracy and explain your choice
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