Today's On-line Assignment

Please review the material below and study the five video/audio clips.  The Investment Problem is a discounted cash flow (DCF) analysis, or referred to by appraisers as yield capitalization.  The model presented below goes all the way to after tax cash flows and after tax equity reversion so this model is valuing an investor's equity investment.  We will tweak this model in class to value the property (Vo).  While you are studying this model, think about how you would change this model to value the overall property (hint: it is much simpler).

Investment Problem Video Clips

            Investment Problem Instructions (1, 2, and Homework)

            Investment Problem 1 Steps 1-7

            Amortization Table

            Investment Problem Spreadsheet

            Investment Problem Print Out  with Notes (pdf file)

            Investment Problem Video/Audio Clips:

                Introduction to the Investment Problem

                Step 1

                Step 2-3

                Step 4-5

                Step 6-7

Also, don't forget.  You are invited to the SW Regional Economic and Housing Market Analysis by Christopher Hecker this Wednesday starting at 6:30 PM in room PB 192.  Hope to see you there!