Question

Which of the following is not an acceptable approach to valuing commercial real estate? (A) Sales...

Which of the following is not an acceptable approach to valuing commercial real estate?

(A) Sales Comparison (comparables)

(B) Discounted Cash Flow (DCF)

(C) Factor discounting rates

(D) Replacement Cost, land + structure

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Answer #1

Solution :-

The Correct Answer is ( C ) that is Factor Discounting Rates

Except Factor Discounting Rates all options are acceptable approach to valuing commercial real estate .

The Only three options that used to Valuing commercial real estate =

1. The Sales Comparison Method ( Comparables )

2. The Cost Approach ( Replacement Cost, land + structure )

3.  The Income Approach (  Discounted Cash Flow (DCF) )

If there is any doubt please ask in comments

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