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Updated about 1 year ago on . Most recent reply

DCF discount rate
Hi all, I'm reading Real Estate By the Numbers and I get PVM, FV, interest vs discount rate. Where Im struggling is Dicounted Cash Flow using the Discount Rate. How are they building an interest rate into cashflows to make the numbers work? Only way I can see to do that is use the annual rent increase (say 3%) as the DR. Any guidance would be greatly appreciated.