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Time Value of Money for Planners

This course will introduce planners to the concept of time value of money that will provide the foundation for real estate pro forma analysis.

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Course Info

  • Duration 10 video lessons (80 Mins)
  • Published Published
    2015
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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

Learn these skills

  • Development
  • Economics
  • Financing
  • Housing
  • Land Use
  • Real Estate
  • Microsoft Excel

AICP CM

This course is approved for 1.25 AICP CM credits

CNU-A

This course is approved for 1.25 CNU-A credit.

Meet Your Instructor

Menka Sethi

Menka Sethi

Menka Sethi is an accomplished consultant and professor in the field of real estate development and finance.

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