Simple Computer Applications Improve the Versatility of Discounted Cash Flow Analysis

摘要

Using discounted cash flow analysis, an appraiser can more sensibly interpret real estate value as long as he makes sensible assumptions. Because major variables applied in DCF analysis do vary to a certain extent, depending on different market circum stances, the validity of the model may be affected. Through Monte Carlo simulation, the likelihood of a certain value for all the relevant variables can be predicted.