Under the income approach, the value of the asset is the present value of the future economic income associated with the asset.

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The income approach is based on the idea that the value of an asset is determined by the income it generates. Specifically, the value of the asset is calculated as the present value of the future income or cash flows that the asset is expected to generate. This approach is commonly used in real estate valuation, where the income from a property is used to estimate its market value.

Under the Income Approach, the Value of the Asset Is