abstract Appraisers ofttimes appl...

abstract

Appraisers ofttimes apply the discounted cash liquefy (DCF) model when performing an appraisal or investment analysis using the income capitalization approach. Use of DCF requires an appraiser to forecast events to come periodic cash flows and terminal value. It frequently provides the best estimate of the market value (MV) of a plot but normally does not provide an estimate of risk associated with the appraiser's forecast. Developing an actual measurement of risk, i.e., an estimate of the standard deviation of a forecasted variable, is time consuming and difficult. This paper not aways a simple Excel model that provides a measure of the