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Appraisal Institute Education

The Discounted Cash Flow Model: Concepts, Issues, and Applications | Program Details

This new, one-day seminar focuses on the basic concepts and principles of discounted cash flow valuation and modeling. DCF modeling is a powerful tool when properly used and understood. You will find that it adds value to your appraisal assignments. Developed for participants with varied appraisal backgrounds, this seminar mirrors real-world situations. After completion of the seminar, the handbook, filled with sample problems and examples, will continue to serve as an invaluable desk reference.

At the end of this seminar participants will be able to

  • Recognize the three categories of factors driving income property value

  • Explain why cash flows are discounted

  • Determine present values

  • Explain how the DCF model reflects how the market determines value

  • Understand the theoretical underpinnings of PV, NPV, and IRR

  • Make defensible choices of discount rates

  • Apply both blended and cash-flow-specific discount rates to arrive at PV estimates

  • Explain the relationship between the discount rate(s) and the timing of expected cash flows

  • Recognize the unreliable nature of the occasional inaccurate investment forecast

  • Describe basic strategies to minimize the negative impacts of inaccurate investment forecasts

  • Downloads
    Table of Contents and Overview [PDF]

    Type
    General/Residential

    Equipment Required
    HP-12C Calculator

    Tuition
    Please contact the sponsoring chapter for information on fees applicable to chapter programs.

    Classroom Hours
    7.0

    Level
    Intermediate

    For Further Reading
    None Specified.

    Registration Information
    None Specified.

    Click here for state approvals


    Class Schedule & Locations

    12/09/2009 - 12/09/2009
    Location: Ft. Washington, PA
    Click here for location details
    Sponsor: Appraisal Institute
    Contact: National Programs, (312) 335-4140
    Instructor: Lusht PhD, Kenneth M., MAI, SRA
    Register


    01/22/2010 - 01/22/2010
    Location: Greensboro, NC
    Click here for location details
    Sponsor: North Carolina
    Contact: Nancy Toombs, (336) 297-9511
    Instructor: Urubek, John H., MAI