Formula For Income Approach To Value
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A building sells for 200 000.
Formula for income approach to value. Formula for income approach it s possible to express the. This process applies an appropriate yield or discount rate to the projected income stream to arrive at a capital value. The above equation is based on the formula for present value of a perpetuity. The formula you use is.
Note in this formula the reversal of the irv formula for finding value. Conversely the income approach starts with the income earned wages rents interest profits from the production of goods and services. Another approach called multi stage growth model divides future into two or more stages. Value net.