Unbundling the cash flow: beyond the property internal rate of return

Healy, J.J.

Unbundling the cash flow: beyond the property internal rate of return - 1992 - Appraisal Journal 60(3) July 1992, 357-365(9) .

Risk-return relationships are often critical to the proper valuation of income-producing property. This article presents a method for the analysis of the individual components which create value, which can be used to identify the characteristics of a cash flow valuation. The resulting unbundled cash flow analysis can be used to develop an adjusted overall property internal rate of return, or ultimately, a risk-adjusted rate of return associated with each of the valuation components that contribute to value.


CASH FLOW ANALYSIS
PERFORMANCE MEASUREMENT
RATES OF RETURN
VALUATION METHODS