DCF for Capital Projects in Condo Association


 
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DCF for Capital Projects in Condo Association
Vladimir Shnaydman
QUESTION: Hi, Condo association is planning roof replacement ten years from now. Today estimations are $1M. Should discounting be applied to this project? It means that future cost of the project would be 1M/(1+disc. rate)^10. Is it correct? Thank you.
 

 
DCF for Capital Projects in Condo Association
Rishi R Koirala, Teacher, Nepal, Member
The Present Value of your cost in the tenth year would be as your calculation, you are correct!
You can check the present value you calculated to...Sign up
 

 
Present Value of a Future Value
Nick Moore, Financial Consultant, United Kingdom, Member
If the question is "what is the present cost of a roof replacement in ten year's (or any future period)?" then the answer is $1m, as inflation will in...Sign up
 

 















 


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