In selecting the Discount Rate for a retail strip center you are considering acquiring, you note that other similar strip centers generate an unlevered 9% Cash on Cash Return. You perceive less risk in the cash flows in your contemplated acquisition compared to these comparable strip centers. All other factors being equal, which Discount Rate would you select to determine your purchase price offer?

• 1.A Discount Rate lower than 9%
• 2.A Discount Rate equal to 9%
• 3.None of these
• 4.A Discount Rate higher than 9%