Equation of valuation

Article evaluates complex properties using the income approach, the calculation of the cost of which is available through a capitalization of cash flows for the periods. It is shown that the basic formula of this method by means of simple mathematical transformations can be represented by the equation estimates, one of which - the accumulated sum of the costs of creating the property, and the other - the discounted sum of future income. It is shown that such a transformation allows, in particular, to understand what profit entrepreneur, real estate cost, the cost of real estate income, and calculate the total depreciation of improvements land.