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| The Case of the Mysterious Sinking IRR |
| By Frank Gallinelli |
| Users of our Real Estate Investment Analysis
program sometimes call us with questions that are not about the
software but about the underlying analysis. This is the first in a
series of "case study" articles that will address some of the questions
we hear. If we had a "greatest hits" list for those questions the all-time winner would be this: "My cash flow goes up each year; the value of the property goes up each year; but when I look at the Internal Rate of Return, it goes down almost every year. What's up with that?" To see how this can happen, let's take a look at two very simple examples. Continue reading -->> Copyright 2006, RealDataź Inc. All Rights Reserved The information presented in this article represents the opinions of the author and does not necessarily reflect the opinions of RealDataź Inc. The material contained in articles that appear on realdata.com is not intended to provide legal, tax or other professional advice or to substitute for proper professional advice and/or due diligence. We urge you to consult an attorney, CPA or other appropriate professional before taking any action in regard to matters discussed in any article or posting. The posting of any article and of any link back to the author and/or the author's company does not constitute an endorsement or recommendation of the author's products or services. You may not reproduce, distribute, or transmit any of the materials at this site without the express written permission of RealDataź Inc. or other copyright holders. The content of web sites displayed or linked from the realdata.com is the copyrighted material of those respective sites. |
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