volume 5, issue 5, P955-982 1999
DOI: 10.1017/s1357321700000763
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A.T. Adams, P.M. Booth, B.D. MacGregor

Abstract: This paper considers the application of discounted cash flow (DCF) techniques to the analysis of the property investment market. The traditional method of property valuation is briefly outlined and its shortcomings highlighted. An alternative DCF procedure is derived to calculate the present value of a property investment. This method will be familiar to actuaries, but is not always used in property disciplines. The sensitivities of this formulation to changes in the force of real interest, force of real rent…

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