OK, this is a very rough cut with a few "modest" mistakes but should still get the basic concept across for discount rates. This is a key principle in most any form of investing and especially in real estate. When determining a net present value (NPV) you must select a discount rate. This video helps explain how the discount rate works and why today's value is less if you set a higher discount rate.
Discount rate basics
OK, this is a very rough cut with a few "modest" mistakes but should still get the basic concept across for discount rates. This is a key principle in most any form of investing and especially in real estate. When determining a net present value (NPV) you must select a discount rate. This video helps explain how the discount rate works and why today's value is less if you set a higher discount rate.
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