My Lord a Valuation is not the Valuation

The above sentence was made by an astute valuer who was defending his values in a court. The Judge and all the learned in the courtroom were baffled and astonished. After 30min of elucidating on the statement, the entire court cannot but applauded the Valuer. The Judge concluded you Valuers are really friend who are learned.

As a promising Valuer in the making, critically examine the statement, with examples and illustrations convince a client why a Valuation is not the Valuation.

(Word limit: 700 words)

2. With the assignment you submitted on your hostel in mind, consider you are to determine the investment value of the Hostel. Your estimation certainly will be based on several assumptions.

Present how you would identify the key assumptions and their sources (e.g. rental values, expenses, discount rate, etc) in a discounted cash flow (DCF) model.