Determining the present value of nonannual cash flows
Article Abstract:
Typical analyses of non-annual cash flows discount the true value of income because they overlook such factors as interest that is compounded monthly. These analyses depend on simply adding totals on an annual basis and dividing by 12 to get a monthly figure. An alternative method is presented for calculating the effective interest rate on a financial calculator. The resulting numbers are expected to produce more accurate appraisals of income property.
Publication Name: Real Estate Review
Subject: Real estate industry
ISSN: 0034-0790
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
Averting the consequences of tenant bankruptcy
Article Abstract:
Landlords can avoid the negative consequences associated with the bankruptcy of tenants by carefully selecting tenants and putting defensive clauses in leases. Landlords should be vigilant and on the lookout for signs that tenants are in financial trouble. If financial trouble is indicated, the landlord should terminate a lease before the tenant can file for bankruptcy and receive bankruptcy protection.
Publication Name: Real Estate Review
Subject: Real estate industry
ISSN: 0034-0790
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: The centre of attention. Mr Energiser and the talisman effect. A bridge too far?
- Abstracts: The concept and estimation of economic life in the residential appraisal process
- Abstracts: Inflation risk, payment tilt, and the design of partially indexed affordable mortgages. Self-selection in the fixed-rate mortgage market
- Abstracts: Leasing as a lottery: implications for rational building surges and increasing vacancies. The fractal structure of real estate investment trust returns: the search for evidence of market segmentation and nonlinear dependency
- Abstracts: A hazardous ruling: the Service denies deductibility of asbestos mitigation costs. Deductibility of environmental cleanup costs: the debate continues