Just as the best way to view equities is as the discounted value of future cashflows, the best way to view property is as the discounted value of future rents.
It states that the value of any investment is the present value of all future cash flows discounted by a risk factor.
The fundamental value of any stock is the discounted value of the future dividends.
The theoretical value of a company is the present value of all future cash flows that will accrue to shareholders.
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The website offered a calculation of the future value of gold.
The value of a company should be based on the value of its future free cash flows discounted at its cost of capital.
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The greater flexibility of the new policies will reduce the valuation of taxpayer assets and reduce the value of the future income component used to determine acceptable offers.
The interest rate allows me to discount the value of some cash payment in the future to the value the principle would hold for me if I had it now.
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Presumably the present value of cost recovery deductions net of future recapture is embedded in the fair market value of buildings.
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They have discussed using some of the money raised for a one-off payment to the state, representing the bank's estimate of the present value of its future profits up to 2014, when the special dividend is due to be scrapped.
Just as the value of a company's shares should equal the discounted present value of its future profits, so the price of a house should reflect the future benefits of ownership, either as rental income or in the rent saved by an owner-occupier.
Ideally, the money and the future value of the work are unimportant.
When Ben Bernanke hosts the first ever press conference by a Federal Reserve Chairman on Wednesday, the subtext will be all about trust trust in the Fed and the future value of the dollar.
Just as the price of a share should equal the discounted present value of future profits, so the price of a house should reflect the future benefits of ownership either rental income or the implicit rent saved by an owner-occupier.
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Just as the price of a share should equal the discounted present value of future dividends, so the price of a house should reflect the future benefits of ownership, either as rental income for an investor or the rent saved by an owner-occupier.
The financial markets calculate the present value of future government revenues in order to determine creditworthiness.
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The gold-and-Treasuries barbell trade reflects the wide uncertainty in the future value of the dollar and the increasing volatility of inflation.
But how much this would cheer the industry would depend on the price: it would be cold comfort if the price just balanced the expected value of future profits.
The challenge will be to engage on fundamental reform and return to sound money under a rule of law that safeguards persons and property, including the property right a person has in the future value of money.
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Although the details vary from country to country, a widely used rule-of-thumb says that a lease does not have to be capitalised so long as the net present value of the lease liabilities (ie, future rents) amounts to less than 90% of the value of the asset.
The lower the interest rate, the higher the present value of those future payments.
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The financial markets would value Laffer Shares in the same way that they value all other equity shares, which is based upon the present value of expected future cash flows.
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The Woodhill Curve shows the combinations of tax take and real GDP growth rate that produce the same present value of future Federal revenues.
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The entitlement numbers are calculated as the present value of future promises less future taxes (at present rates) to cover them.
With higher interest rates, the discounting reduces the present value of those future income (or psychic benefit) streams.
Measuring economic costs weighs the expense of both vaccination and illness against the net present value of the future earnings of someone who would otherwise die from the disease.
Even those who buy solely for the love of art and excitement about a specific artwork tend, even in the backs of their minds, to consider the possible future resale value of their collections.
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First, by the corporate income tax, then again by the individual income tax through the tax on dividends, then if you sell the capital investment, through the capital gains tax (which taxes the increase in the present value of the future income stream to the investment, which will be taxed again when earned), then when you die, by the death tax.
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Low gilt yields, as a matter of arithmetic, also raise the future value of the pensions that companies have promised to pay out.
The shared appreciation feature gives the lender the right to the first, say, 40% of the appreciation of the collateral above the value of the debt over some specified future time period (say five or 10 years).
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