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Capitalized Value using Profit Based Valuation Formula

GoCapitalized Value Formula

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Capitalized Value is the amount of money whose annual interest at the highest prevailing rate of interest will be equal to the net income from the property. Check FAQs

C v = R N \cdot Y

C_v - Capitalized Value?R_N - Net Rental Income?Y - Years Purchase?

Capitalized Value using Profit Based Valuation Example

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Here is how the Capitalized Value using Profit Based Valuation equation looks like with Values.

Here is how the Capitalized Value using Profit Based Valuation equation looks like with Units.

Here is how the Capitalized Value using Profit Based Valuation equation looks like.

52800 = 4800 \cdot 11

52800 = 4800 \cdot 11

52800 = 4800 \cdot 11

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Capitalized Value using Profit Based Valuation Solution

Follow our step by step solution on how to calculate Capitalized Value using Profit Based Valuation?

FIRST Step Consider the formula

C v = R N \cdot Y

Next Step Substitute values of Variables

∴

C v = 4800 \cdot 11

Next Step Prepare to Evaluate

∴

C v = 4800 \cdot 11

LAST Step Evaluate

∴

C v = 52800

Capitalized Value using Profit Based Valuation Formula Elements

Variables

Capitalized Value

Capitalized Value is the amount of money whose annual interest at the highest prevailing rate of interest will be equal to the net income from the property.

Symbol: C_v

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Capitalized Value

Net Rental Income

Net Rental Income is calculated by deducting all outgoings from gross rent.

Symbol: R_N

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Net Rental Income

Years Purchase

Years Purchase in perpetuity is defined as the capital sum required to be invested in order to receive a net annual income of rs/- 1 at a certain rate of interest.

Symbol: Y

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Years Purchase

Other Formulas to find Capitalized Value

Go Capitalized Value

C v = R N \cdot Y

Other formulas in Valuation Engineering category

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Go Annual Installment given Sinking Fund

I a = I c \cdot S

Go Coefficient of Annual Sinking Fund

I c = \frac{I r}{{(1 + I r)}^{T} - 1}

Go Coefficient of Annual Sinking Fund given Sinking Fund

I c = \frac{I a}{S}

How to Evaluate Capitalized Value using Profit Based Valuation?

Capitalized Value using Profit Based Valuation evaluator uses Capitalized Value = Net Rental Income*Years Purchase to evaluate the Capitalized Value, The Capitalized Value using Profit Based Valuation formula is defined as the current value of an asset, based on the total income expected to be realized over its economic life span. Capitalized Value is denoted by C_v symbol.

How to evaluate Capitalized Value using Profit Based Valuation using this online evaluator? To use this online evaluator for Capitalized Value using Profit Based Valuation, enter Net Rental Income (R_N) & Years Purchase (Y) and hit the calculate button.

FAQs on Capitalized Value using Profit Based Valuation

What is the formula to find Capitalized Value using Profit Based Valuation?

The formula of Capitalized Value using Profit Based Valuation is expressed as Capitalized Value = Net Rental Income*Years Purchase. Here is an example- 52800 = 4800*11.

How to calculate Capitalized Value using Profit Based Valuation?

With Net Rental Income (R_N) & Years Purchase (Y) we can find Capitalized Value using Profit Based Valuation using the formula - Capitalized Value = Net Rental Income*Years Purchase.

What are the other ways to Calculate Capitalized Value?

Here are the different ways to Calculate Capitalized Value-

Capitalized Value=Net Rental Income*Years Purchase

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Capitalized Value using Profit Based Valuation Formula

​GoCapitalized Value Formula

Capitalized Value using Profit Based Valuation Example

Capitalized Value using Profit Based Valuation Solution

Capitalized Value using Profit Based Valuation Formula Elements

Other Formulas to find Capitalized Value

Other formulas in Valuation Engineering category

How to Evaluate Capitalized Value using Profit Based Valuation?

FAQs on Capitalized Value using Profit Based Valuation

Variable Name

GoCapitalized Value Formula