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The parties in the instant case rely on a version of the
income valuation method called the discounted cash-flow (DCF)
method. The DCF method is a set of procedures in which an
appraiser specifies the quantity, variability, timing, and
duration of periodic income, as well as the quantity and timing
of reversions, and discounts each to its present value at a
specified yield. In formulating their DCF analyses, each expert
in the instant case uses different input assumptions but their
cash-flow estimates end up being very similar.6 The main reason
6 The cash-flow estimates of the experts are as follows:
MVN
Holden Marx
Year 1 $849,228 $812,778
Year 2 866,213 845,042
Year 3 883,537 876,840
Year 4 901,208 887,042
Year 5 946,268 923,371
Year 6 993,582 941,771
Year 7 1,043,261 948,896
Year 8 1,095,424 1,007,989
Year 9 –- 1,156,425
Year 10 –- 1,171,932
Year 11 –- 1,209,313
MVS
Holden Marx
Year 1 $560,638 $598,160
Year 2 547,080 472,941
Year 3 561,617 592,840
Year 4 584,522 613,129
Year 5 610,669 628,580
Year 6 634,919 644,039
Year 7 652,406 627,970
(continued...)
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