Property Valuation
In Wyoming, the discounted cash flow (DCF) analysis is used in the income approach to:
ACalculate the current market rent
BProject and discount future income streams and reversion to estimate present value✓ Correct
CDetermine land value only
DCalculate the cost of improvements
Explanation
DCF analysis projects the property's future income streams and eventual sale (reversion) over a holding period, then discounts them back to present value using a discount rate that reflects investment risk. It provides a more detailed income approach analysis than direct capitalization.
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