Class 9 & 10: Discounted Cash Flow Modeling & Sensitivity & Scenario Testing Stress testing assumptions
Class 9: Discounted Cash Flow Modeling
Pro forma DCF with unlevered vs. levered IRR. Example: Office building exit at 6.5% cap after 5 years.
Class 10: Sensitivity & Scenario Testing
Stress testing assumptions. Example: Vacancy up 5% reduces IRR from 14% to 10%.
We will create a DCF Real Estate Model and the use Sensitivity/Scenario Testing
The Mid-Term will be having you build a model and sensitize it.
Professor Sistrunk will email you each, your own data.
The goal is to determine what we should pay. What we are will to pay is based on our personal financial goals (or Corporate Goals).
Sensitivity Analysis
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