CHAPTER 13: DCF ANALYSIS - PRACTICE PROBLEMS 1. When is discounted cash flow analysis used and what are its components? Its whom the value of an asset based on nyt at future cornflows 2. How is using discounted cash flow to calculate value different from using the IRV formula (capitalization)? Is one preferable over the other? Why? 3. How does the market discount rate compare to the market capitalization rate? 4 What are some sources of determining market discount rates? 5. What are the key differences between market value and investment value? Mokst valt w NUI and corruite Investment value wa, BTCF and owners requind return 6. Suppose you owned a property and the land directly adjacent to it was up for sale. Might your personal investment value in this land be different from the market value