If the market value cap rate $($yield$)$ on a certain type of property is $8\mathrm{.}5\%,$ and you expect the property to appreciate at $3\mathrm{.}5\%$ per year, what discount rate $($total return$)$ should be applied to determine the market value in a multi$-$year DCF analysis?

Excel Link: Excel Sheet.xlsx

$4\mathrm{.}0\%$

$10\mathrm{.}0\%$

$11\mathrm{.}5\%$

$12\mathrm{.}0\%$