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The Discounted Cash Flow Model: Concepts, Issues, and Apps. Education Schedule (PDF)

Education Catalog (PDF)
Some AI educational programs may not be approved in every state.
Students should check state approvals prior to registering for any Appraisal Institute program.

ClassroomOn-Demand Online EducationLive Online (Synchronous)

This 5-hour seminar focuses on the basic concepts and principles of discounted cash flow valuation and modeling. DCF modeling is a powerful tool when properly used and understood. You will find that it adds value to your appraisal assignments. Developed for participants with varied appraisal backgrounds, this seminar mirrors real-world situations.

At the end of this seminar participants will be able to:

    • Recognize the three categories of factors driving income property value
    • Explain why cash flows are discounted
    • Determine present values
    • Explain how the DCF model reflects how the market determines value
    • Understand the theoretical underpinnings of PV, NPV, and IRR
    • Make defensible choices of discount rates
    • Apply both blended and cash-flow-specific discount rates to arrive at PV estimates
    • Explain the relationship between the discount rate(s) and the timing of expected cash flows
    • Recognize the unreliable nature of the occasional inaccurate investment forecast
    • Describe basic strategies to minimize the negative impacts of inaccurate investment forecasts


    • Introduction
    • Property Value and the Discounted Cash Flow (DCF) Model
    • DCF Models: The Three Pillars and Their Uses
    • Understanding the Discount Rate
    • Adding Depth: Some Other Considerations in DCF Modeling
    • Conclusion

AI CE Credit for Designated members and Practicing Affiliates

• Attend Only = 31.25 points

General/Residential [G/R]


Required Technology

HP-12C Calculator

Recommended Text
None Specified.

AI Price: $ 81.00
Full Price: $ 96.00

Click Here for State Approvals

Kenneth M. Lusht, PhD, MAI, SRA

I agree to the terms and policies set forth under the Appraisal Institute Online Education Policy. I also certify that I am the person identified above under Personal Data and that I will personally complete each assigned module of instruction and any examination(s). I understand and agree that if I misrepresent my identity or arrange for someone else to represent himself or herself as me at any time during the Appraisal Institute online course or seminar, I will be immediately removed from the course or seminar and I will not be entitled to any refund. I further understand that if I am a member of the Appraisal Institute and participated in any misrepresentation of identity, by affirmative act or failure to act, that I will be the subject of a peer review proceeding under Regulation No. 6 for violation of the Appraisal Institute's Code of Professional Ethics and Standard of Professional Appraisal Practice, and that such peer review proceeding may result in termination of my Appraisal Institute membership.

Additional Information
Please allow 1 hour after registration to start an online session in progress (on or after the session start date). Go to and log in with the username and password you used when you registered. You will automatically be taken to the "My Appraisal Institute" page. Near the middle of that page your course will be listed with a link next to it that says "Go To Class".

Online Class Schedule

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