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income approach method

William Humberto Hernández Guevara

Created on October 11, 2022

Valoración y negociación tecnológica

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William Hernández Guevara

Group: 212032_86

APRIL 2023

UNAD

Income approach method

Income approach method

The income approach is a real estate valuation method popular with real estate investors that prioritizes the income a property generates, they use the income approach to value a property based on its net operating income, which in a general sense, is the income a property generates minus operating expenses. Investors also use the cost and sales comparison approaches, as each method has its advantages and disadvantages.

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Related processes

Measures the buyer's risk against the company's potential earnings, Two methods are used to arrive at a value: compounding and discounting. Both methods use a formula to calculate the value of the business based on future earnings. While capitalization uses a formula based on past performance, the discount formula takes into account the risk factors assumed by the buyer.

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Mathematical formula

PIB = Renta Nacional Total + Impuestos a las Ventas + Depreciación + Renta Neta de Factores Extranjeros Total ingreso nacional = Suma de renta, ganancias de salarios. Impuestos de ventas= impuesto por un gobierno sobre las ventas de bienes y servicios. Depreciación= la disminución en el valor de un activo. Ingresos netos de factores extranjeros = Ingresos obtenidos por un factor extranjero, como la cantidad que una empresa o una persona extranjeras gana del país

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¿How can companies create value from their innovation?

It is the one that is always changing, testing new ideas and offering new products or services, or also continuing to provide its service with much more reliability and without failure errors. Not every product may be a hit, but they keep adapting to the market and learning how best to stay in it.

¡Thank you!!