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because his rate does not fall within the range of these amounts.
Using net income multipliers rather than discount or
capitalization rates, respondent calculates Dvorak’s net income
multiplier for Charlotte to be 7.78 and argues that the correct
net income multiplier would fall in the range of 9.22 to 9.6.
For Monroe, respondent calculates Dvorak’s net income multiplier
to be 7.77 and argues that the correct net income multiplier
would fall in the range of 9.31 to 9.84.
There is no evidence in the record suggesting that the small
sample of comparables used in Dvorak’s market approach could be
used to generate a reliable net income multiplier, or
capitalization rate, for purposes of an income valuation of the
subject properties. Indeed, the evidence shows just the
opposite. In his market approach, Dvorak found virtually all of
the comparables to be superior to the subject. In his income
approach, Dvorak himself used a broad-based survey of investors
to derive the required rate of return for an investor in the
subject properties, rather than simply looking at the rates of
return for the very small sample of actual sales relied on by
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