In a Discounted Cash Flow analysis, how does applying a terminal capitalization rate to the final year's projected Net Operating Income determine the property's exit value?

In a Discounted Cash Flow analysis, the exit value represents the estimated sale price of a property at the end of a specific holding period. To determine this value, an analyst selects a terminal capitalization rate, also known as an exit cap rate, which reflects the market expectation for the property's yield at the time of sale based on its risk profile and income potential. The analys....