The__________approach for measuring fair value estimates value by estimating future amounts of earnings or cash flows and then mathematically converting these amounts to a single present value.
The approaches to revenue have been one of 3 main classes of methods and techniques used mostly by property managers, considered valuation alternatives.
It is determined by dividing the estimated operating expenses by both the rate of capitalization. It is especially popular in appraisals of commercial property as well as in appraisals of companies.