DCF/NPV Analysis
What is a DCF Analysis?
A Discounted Cash Flow (DCF) Analysis is a method of valuation to determine whether a property will be profitable by discounting projected future cash flow by a discount rate. This method then leads to a current value of the property.
What is NPV?
A Net Present Value (NPV) is simply the current value of the property achieved in the DCF Analysis described above.
Who could benefit from the use of a DCF/NPV Analysis?
Any real estate investor
A Broker or Agent to better represent their buyer/seller