Cap rates are said to be myopic. What does this mean? Articulate your answer by constructing an example based on the fol

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Cap rates are said to be myopic. What does this mean? Articulate
your answer by constructing an example based on the following
instructions: a- consider an investment horizon of 5 years; b-
consider two properties – one with stable Net LSE ST2020/GY462 Page
3 of 6 Operating Income (NOI) at 1mio (property A) and one with
initial NOI at 1mio but growing at 5% per year (property B); c-
consider an unadjusted cap rate of 10%. Using this information,
determine the NOIs for both properties in each of the 5 years and
the sale values at the end of the holding period. How much would
you pay for Property A and Property B if you worked out your answer
using an uncorrected caprate method? How would this answer change
if instead you used a Discounted Cash Flow (DCF) method using
discount factor equal to 10%