Terminal values for income properties

Jaime Sabal Cárdenas

Terminal values for income properties

Jaime Sabal Cárdenas

Research output: Case study

Abstract

When considered as the present value of a perpetuity, the terminal values of income properties have two salient characteristics. First, their cash flows are not homogeneously risky meaning that they must be discounted at different discount rates. And second, some of the outflows take place periodically but not yearly. Because of this, the computation of the terminal value demands a specific procedure. This paper proposes such formulas and discount rates.

Original language	English
Publication status	Published - 1 Aug 2011

Cite this

@misc{f338682fba094371a107e8785ac9d70e,

title = "Terminal values for income properties",

abstract = "When considered as the present value of a perpetuity, the terminal values of income properties have two salient characteristics. First, their cash flows are not homogeneously risky meaning that they must be discounted at different discount rates. And second, some of the outflows take place periodically but not yearly. Because of this, the computation of the terminal value demands a specific procedure. This paper proposes such formulas and discount rates.",

author = "\{Sabal C{\'a}rdenas\}, Jaime",

year = "2011",

month = aug,

day = "1",

language = "English",

}

TY - GEN

T1 - Terminal values for income properties

AU - Sabal Cárdenas, Jaime

PY - 2011/8/1

Y1 - 2011/8/1

N2 - When considered as the present value of a perpetuity, the terminal values of income properties have two salient characteristics. First, their cash flows are not homogeneously risky meaning that they must be discounted at different discount rates. And second, some of the outflows take place periodically but not yearly. Because of this, the computation of the terminal value demands a specific procedure. This paper proposes such formulas and discount rates.

AB - When considered as the present value of a perpetuity, the terminal values of income properties have two salient characteristics. First, their cash flows are not homogeneously risky meaning that they must be discounted at different discount rates. And second, some of the outflows take place periodically but not yearly. Because of this, the computation of the terminal value demands a specific procedure. This paper proposes such formulas and discount rates.

M3 - Case study

ER -

Terminal values for income properties

Abstract

Fingerprint

Cite this