#commercialappraiser, commercial appraiser, commercial appraisal, commercial appraiser la, mai, appraisal institute ai, tax fraud, trump tax fraud, curtis d harris,

Commercial Appraiser

cre blog

Commercial Appraiser-Appraisal 310.337.1973 - Investment under Uncertainty | Princeton University Press
Never miss a post
Name: 
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

Pinterest

My Sites

My Photo

December 2020

Sun Mon Tue Wed Thu Fri Sat
    1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31    

« Game Theory and Real Options: Analysis of Land Value and Strategic Decisions in Real Estate Development | Main | Tax increment financing (TIF) produces uneven results for economic development and needs reform, new research shows | Lincoln Institute of Land Policy »

June 25, 2020

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

Commercial Appraiser CRE BLOG, 310.337.1973
1.

1 The Orthodox Theory
How should a firm, facing uncertainty over future market conditions, decide whether
to invest in a new factory? Most economics and business school students are taught a
simple rule to apply to problems of this sort. First, calculate the present value of the
expected stream of profits that this factory will generate. Second, calculate the present
value of the stream of expenditures required to build the factory. Finally, determine
whether the difference between the two - the net present value (NPV) of the investment -
is greater than zero. If it is, go ahead and invest.

The comments to this entry are closed.