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Real Estate Glossary

Discounting

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Written by Luis Escobar

This is the process of calculating the current value of a stream of payments or a singular payment to be collected in the future. Discounting is the main factor utilized in pricing a stream of future cash flow. The higher the discount, the greater the risk associated with an investment and its cash flows in the future.

This is the process of calculating the current value of a stream of payments or a singular payment to be collected in the future. Discounting is the main factor utilized in pricing a stream of future cash flow. The higher the discount, the greater the risk associated with an investment and its cash flows in the future.

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Luis Escobar

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