ppt课件-overhead set#2 v a l u a t i o n a p p r o a c h e s（开销组# 2 v l u t i o n p p r o c h e s）.pptVIP

Overhead Set#2: VALUATION APPROACHES 3 Approaches to Valuation: Cost Approach Income Approach Sales Comparison or Market Approach 1. Cost Approach a. cost of duplicating property minus depreciation b. most fruitful in engineering or cost-to-cure cases c. potential problems in ranking projects 1. new vs. established structures--different risks from being leased up 2. non-viable structures: e.g., the World Trade Center in Kansas City 2. Income or Cap Rate Approach a. capitalizes cash flow as perpetuity via a cap rate 1. V=I/r where V=property value, I=stabilized income flow, r=cap rate b. c