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2. You are an appraiser for BlackRock and are asked to appraise a 14,300 -square-foot Class B office building in the central business district of

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2. You are an appraiser for BlackRock and are asked to appraise a 14,300 -square-foot Class B office building in the central business district of Austin in 2018. You are given the following information to use in valuing the property: a. Compute the value of the office building using the direct capitalization method. b. Determine the value of the office building using a discounted cash flow model. (You can find the expected selling price at the end of year 6 by assuming the terminal (going-out) capitalization rate is 11%

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