Income approach method

Valuation and Negotiation of Technology

Step 3

Income approach method

Student: Yuliana Stefania León Henao Tutor: Daniel Eduardo Medina Group: 212032_52 Date: 04/10/2022

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Selected topic definition

The income approach, also called the income capitalization approach, is a type of real estate valuation method that allows investors to estimate the value of a property based on the income generated by the property. It is used by taking the net operating income (NOI) of the rent collected and dividing it by the capitalization rate. The income approach is generally used for income-generating properties and is one of the three popular approaches to real estate valuation. The others are the cost approach and the comparison approach.

Related processes and mathematical formulas for calculatingthe value of technology using the Income approach method

This titration method measures the difference in the potential of SFC revenues with and without the operation of trade secret. The revenue potential represents the amount of revenue that is available to business owners after considering a required level of reinvestment for continuous operations and for expected growth. Based on available prospective financial data, the analyst selected net cash flow as the appropriate revenue measure.

Net sales Less:The cost of sales Less: Operating expenses is equal to: Net profit before tax Less: Taxes on profits Add: Depreciation and amortization costs Less: Capital expenditure Less: Net working capital additions Less: Contributory asset burden is equal to: Net cash flow

How can companies create value from their innovation?

I can generate value from innovation by implementing new or better processes, organizational and marketing methods that generate a better product and/or better service that satisfies the needs and expectations of the client.

References

- World Intellectual Property Organization (WIPO) & International Trade Centre (ITC), (2010). Exchanging Value – Negotiating Technology Licenses, A Training Manual (pp 32-41). https://www.wipo.int/edocs/pubdocs/en/licensing/906/wipo_pub_906.pdf - REILLY, R. F. (2015). Family Law Valuation of Technology Intangible Assets. American Journal of Family Law, 29(1), 16–26. https://bibliotecavirtual.unad.edu.co/login?url=https://search.ebscohost.com/login.aspx?direct=true&db=lgs&AN=101056263&lang=es&site=eds-live&scope=site -Enfoque de ingresos. (2021, 6 febrero). Traders Studio. Recuperado 4 de octubre de 2022, de https://traders.studio/enfoque-de-ingresos/

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