Discounted Cash Flow (DCF) Valuation Method
Assessing .NET contains increased functionality within the Income Approach to do property valuations using the Discounted Cash Flow valuation method. This method is used to estimate a property's True Cash Value based on the attractiveness of an investment opportunity. The basic premise is that the DCF analysis uses projected cash flows and discounts them to arrive at a present value.
The analysis part of the program allows for user-defined projections such as the holding period, Yield Rate, Terminal and Going In Cap Rate, and estimated inflation. The analysis output is organized in a clear and defensible format that makes the presentation to a taxpayer, or to Court, easy to explain.