Rolling appraisal of land in as equity

[Stephen Walley]

Let's say a partner brings a price of land to be developed and the land has an appraisal of $2 million. They want to roll the appraisal of $2 million in as $2 million in equity. When calculating returns that include total equity like the equity multiple metric, do you include the $2 million into the total equity or just the amount of cash equity that is being brought in?