ABSTRACT
This chapter talks about the analysis of market rates of return in real estate and housing undertakings, and the variety of analytical techniques which underlie their determination. It presents the analytic techniques and practical examples of their use before entertaining the specific rate of return conceptualizations and computations. The chapter examines the interest formulas necessary to deal with the time value of money. It focuses solely on this concern; however it is necessary to review some preliminaries in order to deal with the final examples in the editor's discussion. The chapter discusses the relative merits of a variety of conceptualizations, only two techniques are reviewed: cash flow on equity and discounted cash flow analysis. It elaborates on the potential variations between projections and operating reality. The chapter reviews the set of quantitative techniques involved in rate of return analysis, the preceding results warrant further general comments.
