Final answer:
The most difficult item for an appraiser to establish in the capitalization of net income is the future growth rate.
Step-by-step explanation:
The most difficult item for an appraiser to establish in the capitalization of net income is the future growth rate. This is because predicting future growth rates can be challenging due to various factors that can impact a company's performance, such as changes in market conditions, competition, and regulations.
Appraisers often use historical data and industry trends to estimate the future growth rate, but it is still subject to uncertainty. Different appraisers may have different assumptions and methodologies, leading to variations in the capitalization of net income.
To mitigate the difficulty in establishing the future growth rate, appraisers may use sensitivity analysis or consider multiple scenarios to assess the potential impact on the valuation.