In valuing real estate using DCF approach, suppose NOI is same for 5 years and in the 6th year, there is a one time increase of 10% and terminal Ke is 15%. So we find terminal value using this 15% Ke. My question is whether at T=0, we discount this using terminal Ke or discount right of today??
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After calculating the terminal value, we use going in cap rate to calculate the value at T=0.