Going from the “property before-tax cash flows” (PBTCF), to the “equity after-tax cash flows” (EATCF). . . 1) Property level (PBTCF): • Net CF produced by property, before subtracting …

It is the discount rate that makes the present value of all expected PBTCF equal to the price A sound decision rule: compute typical IRR on similar properties, and take project if property IRR …

Mar 23, 2019 · • Then apply the 10.60% market PBT discount rate to derive the $1,000,000 MV of the property (based on the PBTCF). • Recognize that this MV also equals IV for marginal …

1) Property level (PBTCF, most common in practice): •Net CF produced by property, before subtracting debt svc pmts (DS) and inc. taxes. •CFs to Govt, Debt investors (mortgagees), …

8) The difference between the Net Operating Income (NOI) and the property before-tax cash flow (PBTCF) is: a. Property Tax Expense b. The Debt Service c. Income Taxes d. Capital …

Going from the “property before-tax cash flows” (PBTCF), to the “equity after-tax cash flows” (EATCF). . . 1) Property level (PBTCF): • Net CF produced by property, before subtracting …

WHAT THE DISCOUNT RATE IS... Disc. Rate = Required Return = Oppty. Cost of Capital = Expected total return = r = r f + RP = y + g, among investors in the market today for assets …

Thus, when we assign a discount rate to discount PBTCFs, this must be a before-tax discount rate. Suppose that the investor requires a before-tax discount rate/yield/IRR of 12%; this 12% …

Property Before-tax Cash Flow = PBTCF. Questions... How forecast vacancy (v)? - Vac = (vac months)/(vac months + rented months) in typical cycle. - Look at typical vac rate in rental mkt; …

Sep 6, 2014 · 3 MAJOR DIFFERENCES (between PBTCF & EATCF levels): • Depreciation: An expense that reduces income tax cash outflows, but not itself a cash outflow at the before-tax …

1) Property level (PBTCF, most common in practice ): Net CF produced by property, before subtracting debt svc pmts (DS) and inc. taxes. CFs to Govt, Debt investors (mortgagees), …

Sometimes, it is also referred to as discounted cash flow rate of return or economic rate of return. Technically, IRR is the discount rate that makes the net present value of all cash flows (both …

The expected total return to the property (i.e., property discount rate) is 8%. What is the property value as of year 0 (i.e., the present discounted value of PBTCF from year 1 to year 5)? …

State two reasons leverage reduces the effective tax rate. How can your after-tax cash flow be higher than your before-tax cash flow in a real estate investment? After-tax cash flow will …

Based on the OMB and futures sales price at the end of your holding period, what is your loan to value ratio at the time of your exit? In other words, when you sell this property, what is your the …

Study with Quizlet and memorize flashcards containing terms like What is the difference between NOI and PBTCF?, in the 2006 peak, why were cap rates so low?, if the loan to value ratio is …

determine what the asset is worth 1) forecast future expected net cash flow (pro forma income statement) 2) determine/apply appropriate opportunity cost of capital (discount rate)

The current property cash ‐ flow, the expectations of future cash ‐ flow growth, and the property discount rate. Exercise 2: A property has a net rent (cash flow or net income) of $1.5 million …

1) estimate how long she expects to hold property 2) make explicit forecasts of: property's net CF for each year, net CF produced by expected sale of property 3)Select rate of return at which to …

Mar 10, 2025 · This is similar to the tiered electric discount rates that will soon be offered to eligible National Grid customers. Finally, the DPU is working to expand heat pump rates …