From the course: Real Estate Analysis Foundations

Unlock this course with a free trial

Join today to access over 22,700 courses taught by industry experts.

Which measure to use?

Which measure to use? - Microsoft Excel Tutorial

From the course: Real Estate Analysis Foundations

Start my 1-month free trial Buy for my team

Which measure to use?

“

- Let's play a game, would you rather know how much money you're going to get from an investment, but have no idea when you're going to receive it? Or would you rather know when you're going to get it, but have no idea how much you're going to get? Or whether you have to pay because it's a loss? Not a really fun game right? And you get the idea, you can't know one without the other and that's the whole idea about these measures of return. You want to know both, so let's think about the two different parameters that we have been discussing. These magnitude of investment, as well as the efficiency of an investment and if we can break down investment opportunities into these four quadrants. Where we have low efficiency and high efficiency versus low magnitude and high magnitude. Let's look at the easy ones first okay. The easy ones are where there are the clear losers and clear winners, if you have both low efficiency and low magnitude these aren't worth your time to explore any further.…

Contents