A note from Sary

The discounted cash flow (DCF)/ net present value (NPV) method supports a price by answering the question "How much is it worth if it can bring in money over time?" In the case of your house, the question becomes "How much would this house bring in each month if you rented it for a period of time, and how much is that series of cash flows worth as a lump sum today?"

Sary The Personal MBA, page 121 · October 19, 2023 Save to shelf
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