Investment Success in Real Estate

by David Garrett

Submitted : Spring 2015

This paper examines an investor’s ability to capture required rates of return for a real estate investment. The exercise utilizes integration to model the time value of money in pursuit of obtaining present value figures. A standard method for calculating the area under a curve is applied in order to measure discounted increasing future cash flows. The result is a present value that can be compared to the cost of acquisition in an effort to aid an investment decision. 

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