What method of obtaining a discount rate could raise questions about its reliability?

The method of reviewing a national survey published five years ago to obtain a discount rate can raise questions about its reliability primarily due to the age of the data and the potential changes in market conditions since that time. Financial metrics, including discount rates, can fluctuate significantly due to various factors, including changes in economic conditions, interest rates, and local market dynamics. A survey that is five years old may not adequately reflect current market realities, leading to potentially outdated conclusions.

In contrast, other methods such as extracting data from recent sales of similar subdivisions, presenting a table of varying yield rates, or conducting interviews with local subdivision developers involve more current, specific, and localized information. These methods tend to capture a more accurate snapshot of present market conditions and investor expectations, making them generally more reliable for assessing discount rates.