I feel very comfortable using a point estimate — 10X annual rent — and understand that there are confidence bounds around it (I have a U. of Chicago MBA, with concentrations in Finance and Statistics). As you know, there have been Nobel prizes given for work in discount rates, but whether you use CAPM or APT or the matched maturity T-Note for riskless investments as Warren Buffett does, there’s a lot of imprecision. So, I don’t sweat the imprecision, and just understand it’s a reasonable range.
