What is the term for the value of property evaluated based on its potential income generation over time?

The term that describes the value of property evaluated based on its potential to generate income over time is best represented by net present value. This concept involves assessing the future cash flows that the property can generate, discounted back to their present value. It takes into account the income produced by the property, as well as the costs associated with owning and operating it, allowing for an understanding of the overall profitability of an investment.

Investment value and market value are related concepts but do not specifically emphasize the income generation aspect in the same manner. Investment value generally refers to the value of a property from the perspective of a specific investor, often incorporating subjective factors related to that investor's personal financial situation or investment strategy. Market value refers to the price at which a property would likely sell on the open market under normal conditions, which may not specifically relate to its income-generating capacity.

Highest and best use refers to the most valuable use of a property that is legally permissible, physically possible, and financially feasible, devoid of the direct income projection aspect that net present value encompasses. Therefore, net present value is the most accurate term to reflect a property's value based on its potential income generation over time.