Chapter 6

Discounted cash flow

What future income is worth today

An explorable introduction to yield capitalization: the present value of a future sum, of an income stream with a resale, and how the yield rate relates to the overall cap rate.

1. 6.1
   Present value of one sumDivide by (1 + rate) once a year
2. 6.2
   An income stream and a resaleDiscount each year, then add
3. 6.3
   Yield rate and cap rateR = Y − growth

3 slider tasks · 2 practice sets · 8 questions