Question: What is the primary difference between a cap rate and a discount rate? Cap rates are only used for commercial properties, while discount rates are
What is the primary difference between a cap rate and a discount rate?
Cap rates are only used for commercial properties, while discount rates are used for residential properties
Cap rates are based on current NOI, while discount rates consider future cash flows
Cap rates are always higher than discount rates
Cap rates are used for expenses, while discount rates are used for income
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