Which of the following is NOT a part of the summation concept for developing a discount rate for real estate investment?

The summation concept for developing a discount rate for real estate investment involves integrating various components that reflect the different risks and returns associated with an investment. Each factor plays a role in determining the overall discount rate applied to future cash flows from the investment.

The profit rate specifically addresses the expected returns on investment above the basic components of risk and opportunity costs. While it is an important aspect of evaluating an investment, it is not explicitly listed as one of the standard components in the summation concept, which typically includes rates associated with non-liquidity, safety, and risk.

In contrast, the rates for non-liquidity, safe rate, and risk rate are fundamental elements that help investors understand and quantify the trade-offs of holding a property versus other investment opportunities. The non-liquidity rate accounts for the fact that real estate cannot be easily converted into cash, the safe rate reflects the return expected from risk-free investments, and the risk rate captures the additional return required by investors for taking on the specific risks associated with real estate.

Thus, while profit rate is certainly a consideration in investment analysis, it does not align with the core components outlined in the summation concept of discount rate calculation for real estate, making it the correct choice for this question.