Name: Time Value of Money for Planners
Author: Menka Sethi

Course Info

10 video lessons (80 Mins)
Published
2015
4.18

Preview Course

Browse Course Chapters

1.

Introduction

1 min
2.

TVM and Planning

3 mins
3.

Compounding: Future Value

7 mins
4.

Compounding: Future Value with Excel

8 mins
5.

Discounting: Present Value

12 mins
6.

Net Present Value: Railroad Bond Pricing

12 mins
7.

Net Present Value: Apartment Rate Restriction

15 mins
8.

Internal Rate of Return

11 mins
9.

Time Value of Money in the Planning Framework

4 mins
10.

Closing Thoughts

3 mins

Course Description

This course will introduce planners to the concept of time value of money, which will provide the foundation for real estate pro forma analysis. We will cover the concepts of compounding and discounting as well as basic return measures like internal rate of return. Participants can expect to practice basic computer modeling functions that will facilitate present value and return calculations as related to property cash flow projections. The connection between the planning regulatory framework and impacts to developer pro forma analyses and financial returns (for example, an in-lieu fee has $x impact on property cash flow and x% impact on a development internal rate of return) are a consistent focus of the course.

Image credit: Sam Beebe