AN ANALYSIS OF THE USE OF DISCOUNTED CASH FLOW METHODS

Michael Bauer

ISBN 10: 383831381X / ISBN 13: 9783838313818

Edité par LAP LAMBERT Academic Publishing Sep 2009, 2009

A propos de cet article

Neuware -Surveys of firms outside the property sector indicate the growth in the use of DCF methods such as the NPV and IRR methods to evaluate projects as compared to the use of such naïve methods as Payback and the Accounting rate of return. The growing convergence of theory and practice is indicated by the growing use of the NPV method. The objective of this study is to determine the capital budgeting methods used to evaluate real estate development projects and to compare the results of a survey with the results of other studies. The thesis finds that that over 90% of all respondents are using a combination of NPV and IRR methods most often to evaluate development opportunities. Interestingly, 85% of all respondents are also using the payback period. Other methods used are the profitability index, residual value, free cash flow, economic value, and return on equity. Developers have adopted DCF methods such as NPV and IRR as the primary methods to evaluate projects rather than naïve methods such as Payback and ARR, although these latter methods remain in use. The use of decision tree analysis and real option analysis is very limitedBooks on Demand GmbH, Überseering 33, 22297 Hamburg 104 pp. Englisch.

N° de réf. du vendeur 9783838313818

Détails bibliographiques

• Titre: AN ANALYSIS OF THE USE OF DISCOUNTED CASH FLOW METHODS
• Éditeur: LAP LAMBERT Academic Publishing Sep 2009
• Date de parution: 2009
• Langue: anglais
• ISBN à 10 chiffres: 383831381X
• ISBN à 13 chiffres: 9783838313818
• Reliure: Taschenbuch
• État de l'article: Neu
• Dimensions: 220 L x 150 H x 7 P (en millimètres) 220 millimètres de largeur par 150 millimètres de hauteur par 7 millimètres de profondeur
• Poids: 173 grammes

A propos de ce titre

Synopsis

Surveys of firms outside the property sector indicate the growth in the use of DCF methods such as the NPV and IRR methods to evaluate projects as compared to the use of such naïve methods as Payback and the Accounting rate of return. The growing convergence of theory and practice is indicated by the growing use of the NPV method. The objective of this study is to determine the capital budgeting methods used to evaluate real estate development projects and to compare the results of a survey with the results of other studies. The thesis finds that that over 90% of all respondents are using a combination of NPV and IRR methods most often to evaluate development opportunities. Interestingly, 85% of all respondents are also using the payback period. Other methods used are the profitability index, residual value, free cash flow, economic value, and return on equity. Developers have adopted DCF methods such as NPV and IRR as the primary methods to evaluate projects rather than naïve methods such as Payback and ARR, although these latter methods remain in use. The use of decision tree analysis and real option analysis is very limited