Question: Discounted cash flow (DCF) valuation models differ from direct capitalization models in several important ways. When discounting future expected cash flows in the DCF methodology,

Discounted cash flow (DCF) valuation models differ from direct capitalization models in several important ways. When discounting future expected cash flows in the DCF methodology, which of the following rates should be used to determine the present value of the forecasted cash flow stream? going-out cap rate required rate of return (discount rate) gross income multiplier going-in cap rate

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