A property valuation method in which the value of the property is determined based on cash flow. This method explicitly takes into account all income and expenses associated with the object during a certain period, including an estimate of the final value.
In general, the cash flow calculation period is 10 to 20 years. The value is then discounted to the moment of valuation. This is using the required rate of return (which is also known as IRR). IRR is derived from the English 'Internal Rate of Return'.
