The reinvestment rate is the interest rate an investor is assumed to be able to earn on intermediate cash flows in the projection of a terminal value.
In the context of real estate investment, the resale price is the projected selling price a property might fetch at the end of the projection period or investment horizon. It plays a crucial role in profitability analysis and investment decision-making.
Reversionary value is the estimated value of a property at the end of a specific time period, often related to the expiry of a lease or a pre-determined holding period. It directly impacts investment decisions and property valuation models.
Terminal value represents the remaining value or expected remaining value of a property at the end of a certain period, such as an income projection period. It is an essential component in financial modeling and valuation, like Discounted Cash Flow (DCF) analysis, to determine the future worth of an asset.
