Discounted Cash Flow Analysis

Analyst uses both the Discounted Cash Flow Method and the Advanced Mortgage Equity Technique estimate value. One method is used to check and prove the other. This makes Analyst unique among income analysis tools and provides a level of confidence in your analyses that cannot be achieved using only the Discounted Cash Flow method.

To determine the value of cash flows produced by a property using the Discounted Cash Flow method, certain steps must be completed. Determine the Required IRR, financing terms (if any are to be included), the holding period (1 to 50 years can be accommodated by Analyst), the Terminal Value at the end of the holding period, and the costs associated with the acquisition and sale.

Finally, net income and net cash flows are determined and discounted. Our Projected Cash Flow Analysis Report is carefully designed to clearly document each critical variable and its influence upon the cash flows. The cash flows are then shown and the discount factors are applied. The report is self contained for easy review by you and your client.

Included are important details like cash on cash yield, debt coverage ratio, and Internal Rate of Return calculation; in addition to the discounting of the cash flows.