Discounted Cash Flow Analysis or DCF is a powerful financial tool used by Saint Arnold Commercial Realty to help investors compare different investment options that may involve;
different revenue streams and – or
different periods of time and – or
different interest rates and – or
different capitalization rates
The DCF analysis measures are a more comprehensive form of financial analysis and give a detailed picture of the projected future performance of a property. These measures require a complete answer to the following four basic questions about any investment to compare alternative investments:
- How many dollars go into the investment?
- When do the dollars go into the investment?
- How many dollars come out of the investment?
- When do the dollars come out of the investment?