Determining the present value of nonannual cash flows

Article Abstract:

Typical analyses of non-annual cash flows discount the true value of income because they overlook such factors as interest that is compounded monthly. These analyses depend on simply adding totals on an annual basis and dividing by 12 to get a monthly figure. An alternative method is presented for calculating the effective interest rate on a financial calculator. The resulting numbers are expected to produce more accurate appraisals of income property.

Analysis, Measurement, Interest rates, Cash flow, Discounted cash flow

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Averting the consequences of tenant bankruptcy

Article Abstract:

Landlords can avoid the negative consequences associated with the bankruptcy of tenants by carefully selecting tenants and putting defensive clauses in leases. Landlords should be vigilant and on the lookout for signs that tenants are in financial trouble. If financial trouble is indicated, the landlord should terminate a lease before the tenant can file for bankruptcy and receive bankruptcy protection.

REAL ESTATE, Laws, regulations and rules, Real estate management

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