1. The Student Handbook to T HE A PPRAISAL OF R EAL E STATE 1 Chapter 24 Discounted Cash Flow Analysis and Special Applications in Income Capitalization

2. Student Handbook to T HE A PPRAISAL OF R EAL E STATE Chapter 24 2 Applicability of Discounted Cash Flow Analysis Both yield capitalization and direct capitalization require an estimate of next year’s net income. Discounted cash flow analysis requires more than one year’s estimate. Several years’ estimates of income, vacancy, collection losses, and expenses are required.

3. Student Handbook to T HE A PPRAISAL OF R EAL E STATE Chapter 24 3 Discounted Cash Flow Analysis of a Small Retail Center

4. Student Handbook to T HE A PPRAISAL OF R EAL E STATE Chapter 24 4 Discounted Cash Flow Analysis of a Small Retail Center, continued

5. Student Handbook to T HE A PPRAISAL OF R EAL E STATE Chapter 24 5 Discounted Cash Flow Analysis of a Small Retail Center, continued

6. Student Handbook to T HE A PPRAISAL OF R EAL E STATE Chapter 24 6 Calculating Net Present Value

7. Student Handbook to T HE A PPRAISAL OF R EAL E STATE Chapter 24 7 Calculating Net Present Value

8. Student Handbook to T HE A PPRAISAL OF R EAL E STATE Chapter 24 8 Payback Period

9. Student Handbook to T HE A PPRAISAL OF R EAL E STATE Chapter 24 9 Profitability Index

10. Student Handbook to T HE A PPRAISAL OF R EAL E STATE Problems Suggested solutions begin on page 432. Chapter 24 10

11. Student Handbook to T HE A PPRAISAL OF R EAL E STATE Chapter 24 11 Case Study: Analysis of an Office Building Investment

12. Student Handbook to T HE A PPRAISAL OF R EAL E STATE Chapter 24 12 Case Study: Analysis of an Office Building Investment, continued

13. Student Handbook to T HE A PPRAISAL OF R EAL E STATE Chapter 24 13 Value Opinion – Case Study