If the market value cap rate yield) on a certain type of property is 10%, and you expect the property to appreciate at 3% per year, what discount rate total return) should be applied to determine the market value in a multi-year DCF analysis?

Question

Quizplus · Accepted Answer

The discount rate in a DCF analysis should reflect the total expected return, which includes both the cap rate yield (10%) and the expected appreciation (3%), adding up to a total of 13%.

If the Market Value Cap Rate Yield) on a Certain