ABSTRACT
Risk is an inherent part of the property development process and we shall consider how this is assessed as part of the evaluation process. Market research is an integral part of the appraisal process and we consider this further in Chapter 7. In this chapter, we discuss the conventional technique of development appraisal before introducing the various cash flow concepts including the discounted cash flow (DCF) approach. Finally, we shall examine the influence of uncertainly and how this can be contained in order to reduce risk.
