DCF/NPV Analysis

What is a DCF Analysis?

A Discounted Cash Flow (DCF) Analysis is a method of valuation to determine whether a property will be profitable by discounting projected future cash flow by a discount rate. This method then leads to a current value of the property.

What is NPV?

A Net Present Value (NPV) is simply the current value of the property achieved in the DCF Analysis described above.

Who could benefit from the use of a DCF/NPV Analysis?

• Any real estate investor

• A Broker or Agent to better represent their buyer/seller