January 12, 2009
What is the capitalized cash flow method?
Can you answer Christopher B's question about cash flow?:
I came upon a term I did not fully understand. What is the capitalized cash flow method for assessing a rental properties value? Ten points for who ever answers first and provides a reference.
Working Capital Management
I came upon a term I did not fully understand. What is the capitalized cash flow method for assessing a rental properties value? Ten points for who ever answers first and provides a reference.
Working Capital Management
Filed under More Cashflow Answers by admin
Comments on What is the capitalized cash flow method? »
i dont know
Value is annual cash flow divided by rate of return desired. If cash flow is 100,000 per year and the desired return is 10%, then the property would indicate a price of $1,000,000 if there are no mitigating factors.
Business merger/acquisition valuations are similar–
Hope this one will help…
I studied accounting 3 yrs ago. Sad to say, i can't think any words to simplify the answer for this one. Consult an accounting practitioner.