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You are trying to apply a multi-year discounted cash flow analysis to evaluate an investment property with long-term leases. The 10-Year Treasury Note is trading

You are trying to apply a multi-year discounted cash flow analysis to evaluate an investment property with long-term leases. The 10-Year Treasury Note is trading at 75 basis points and a reasonable risk premium is 6.25%. You believe the buildings net cash flows and values would reasonably be expected to grow in the long run at about 2% per year. What discount rate should you apply to the property in your DCF valuation of future cash flows?

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