For the apartment currently for sale that you used in Part D i), use the capitalised resale
Question:
For the apartment currently for sale that you used in Part D i), use the capitalised resale value or the
discounted cash flow method from Week 2's lecture to calculate the price of the apartment. Justify
the input that you used in the formula such as how you have projected net rental income (see Week
1 part 2 and Week 2 part 1) and capitalisation/discount rate (Week 2 part 1). How did you come up
with these numbers and what assumptions did you use? Compare the calculated capitalised resale
value/discounted cash flow valuation to the actual price and the estimated sale price from your
regression model. Discuss what property market dynamic factors that exist or are missing in the
models that make the values differ.
Auditing Cases An Interactive Learning Approach
ISBN: 9780134421827
7th Edition
Authors: Mark S Beasley, Frank A. Buckless, Steven M. Glover, Douglas F Prawitt