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Chapter 24. Discounted Cash Flow Analysis and Special Applications in Income Capitalization. Applications of Discounted Cash Flow Analysis (DCF) Both DCF and direct capitalization require an estimate of next year’s net income. Discounted cash flow requires more than one year’s estimate.
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Chapter 24 Discounted Cash Flow Analysis and Special Applications in Income Capitalization
Applications of Discounted Cash Flow Analysis (DCF) • Both DCF and direct capitalization require an estimate of next year’s net income. • Discounted cash flow requires more than one year’s estimate. • Several years’ estimates of income, vacancy, collection losses, and expenses are required. Chapter 24
Table 24.1 Discounted Cash Flow Analysis of a Small Retail Center Chapter 24
Table 24.1 Discounted Cash Flow Analysis of a Small Retail Center, continued Chapter 24
Table 24.1 Discounted Cash Flow Analysis of a Small Retail Center, continued Chapter 24
Table 24.2 Calculating Net Present Value Chapter 24
Table 24.3 Calculating Net Present Value Chapter 24
Table 24.4 Payback Period Chapter 24
Table 24.5 Profitability Index Chapter 24
Case Study: Analysis of an Office Building Investment Chapter 24
Case Study: Analysis of an Office Building Investment, continued Chapter 24
Value Opinion – Case Study Chapter 24