risk: What's a Dollar Worth Today vs. Tomorrow?
- 08/27/09 01:53 PM
Another term that’s important to get a conceptual grasp of is “net present value.” It’s important to understand this concept because most of your real estate income will come in the future. Therefore, you must know what that income is worth today. In my real estate courses, I’ve taught that a dollar today is worth more than a dollar tomorrow. This is due to two reasons: 1. Number one is the affect of inflation on the value of a dollar. Inflation decreases the value of your dollar every day. If it takes one dollar today to buy a loaf of bread … (1 comments)
Another term that’s important to get a conceptual grasp of is “net present value.” It’s important to understand this concept because most of your real estate income will come in the future. Therefore, you must know what that income is worth today. In my real estate courses, I’ve taught that a dollar today is worth more than a dollar tomorrow. This is due to two reasons:;)
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