Next >> The Narrative1 Discounted Cash Flow Analysis allows for a comprehensive and graphic expression of an investment from initial purchase to future resale. This analysis tool can handle both simple and complex cash flows. Features of the DCF include specific lease or income projections by tenant or unit type, specific expense projections and reimbursements, before and after debt service cash flow detail, and various investment measures, including the internal rate of return (IRR). Additional information can be entered for mortgage debt, and rates of return calculated (Equity Dividends and Internal Rate of Return). If a specific price is known, rates of return can be measured against the price, rather than value. For a breakdown of the DCF process, go to The Seven Steps. |