NPV investment decision rule

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Table of contents

1 Introduction
1.1 Background
1.2 Aim
1.3 Limitations
1.4 Method
2 CRE Valuation Theory
2.1 Purpose of valuation and valuation definitions
2.2 Valuation methods
3 Behavioral economics
3.1 The beginning of Behavioral Economics.
3.2 What is behavior economics?
3.3 The sub-disciplines of behavioral economics.
4 Recent trends
4.1 Progress of behavioral economics
4.2 Prospect Theory
4.3 Regret and Cognitive Dissonance
4.4 Anchoring
4.5 Representativeness
5 Behavior of Appraisers
5.1 Experts altered appraisal process
5.2 Anchors
5.3 Biases
5.4 Investor behavior
6 Results
6.1 Commercial real estate appraisal as perceived by different parties
6.2 Commercial real estate appraisal practice without borders
6.3 Outcomes of the interviews
7 Analysis
7.1 Connection to the market
7.2 Capitalization of NOI
7.3 Capitalization of fixed and variable rents
7.4 Pressure on investors
7.5 CAPEX or life cycle
7.6 Banks position in Investors and appraisers relationships (LTV covenant)
7.7 Business cycles
7.8 Thought process
8 Conclusions