Property Valuation
In Montana, 'yield capitalization' (discounted cash flow analysis) is most appropriate for:
AQuick value estimates of single-family homes
BComplex income-producing properties where income is expected to vary over time and the investor's holding period and required return are key considerations✓ Correct
CVacant land with no income
DResidential properties for mortgage underwriting purposes
Explanation
Yield capitalization (DCF) is most appropriate for complex income-producing properties where income varies over time, the reversionary value at the end of the holding period is significant, and the investor's required yield rate is the primary driver of value.
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