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Flexibility and Real Estate Valuation under Uncertainty
book

Flexibility and Real Estate Valuation under Uncertainty

by David Geltner, Richard de Neufville
April 2018
Intermediate to advanced content levelIntermediate to advanced
256 pages
7h 35m
English
Wiley-Blackwell
Content preview from Flexibility and Real Estate Valuation under Uncertainty

9Resale Timing Decision: Analysis: Let’s See what happens when we apply the Tools of Flexibility Analysis to a Classical Investment Decision: when to sell the Property

This chapter shows how we can apply simulation to obtain useful insights and guidance on an important practical problem. It demonstrates the “how” and “why” of flexibility analysis for real estate. It shows how we can do the analysis in a realistic setting, and the results demonstrate by example the value of flexibility for real estate management.

Along the way, we present two methodological additions to the traditional, single‐stream pro forma DCF analysis. These are:

  • Extension of the time horizon in the DCF model; and
  • Use of IF statements.

We demonstrate these additional tools in a very simple, concrete example. But they will be ...

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Publisher Resources

ISBN: 9781119106494Purchase book