Property Valuation
In Alaska, an appraiser estimating the value of a large tract of remote land may use the 'subdivision analysis' approach, which involves:
ADividing the land into minimum lot sizes and totaling their values
BEstimating the retail value of developed lots, deducting development costs and profit, and discounting to present value✓ Correct
CUsing aerial photography to measure the parcel's exact acreage
DComparing the land to similar large tracts on a per-acre basis only
Explanation
Subdivision analysis (discounted cash flow for land development) estimates the gross retail value of developed lots, deducts all development costs (improvements, marketing, overhead), and discounts the projected cash flows to a present value to estimate the land's current market value.
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