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Why are discounted cash flow (DCF) rates typically higher than capitalization rates? A) Discount rates use a reversion of the capitalization rate to project stabilized
Why are discounted cash flow (DCF) rates typically higher than capitalization rates?
A) Discount rates use a reversion of the capitalization rate to project stabilized net operating income (NOI).
B) Discount rates consider that the project is stabilized and has a perpetual income stream.
C) Discount rates include expected increases in future prices and inflation.
D) Discount rates do not take into account the time value of money.
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