April 2018
Intermediate to advanced
256 pages
7h 35m
English
This chapter explains the concepts needed for a good economic valuation of a real estate property or development, and distinguishes between the various terms used in this process. You may think of this chapter as the conceptual counterpart to the discussion of the mechanics of discounted cash flow (DCF) in the preceding chapter. It is our opportunity to make sure that we are all on the same page regarding the basic concepts and meanings associated with the valuation of real estate and use of the DCF model.
Mechanically, the discount rate we use in the DCF valuation model simply converts future cash flow amounts ...