The Income Approach is one of three major groups of methodologies, called valuation approaches, used by appraisers. It is particularly common in commercial real estate appraisal and in business appraisal. The fundamental math is similar to the methods used for financial valuation, securities analysis, or bond pricing. However, there are some signi...
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http://en.wikipedia.org/wiki/Income_approach
Income approach is a valuation method used for real estate appraisals that is calculated by dividing the capitalization rate by the net operating income of the rental payments. Investors use this calculation to value properties based on their profitability.
Found on
https://www.myaccountingcourse.com/accounting-dictionary/accounting-diction
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