When Using Discounted Cash Flow Analysis for Valuation,the Appraiser Must

question 9

Multiple Choice

When using discounted cash flow analysis for valuation,the appraiser must estimate the sale price at the end of the expected holding period.This price is referred to as the property's:

• A)net sale proceeds
• B)selling expenses
• C)terminal value
• D)current market value

---

Definitions:

Encumbrances

Legal claims or liabilities on property or assets that may affect their use or transferability, such as mortgages or liens.

Obligation

A legal or moral commitment to perform or refrain from performing some action.

Commission

A fee paid to an agent or employee for facilitating a sale or service.

Real Estate Agent

A licensed professional who represents buyers or sellers in real estate transactions.