Capitalized Value Calculator

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Valuation Engineering Basic Formulas in Construction Planning and Management Construction Management Project Evaluation and Review Technique

✖Net Rental Income is calculated by deducting all outgoings from gross rent.ⓘ Net Rental Income [R_N]			+10% -10%
✖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.ⓘ Years Purchase [Y]			+10% -10%

✖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.ⓘ Capitalized Value [C_v]

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Capitalized Value Solution

STEP 0: Pre-Calculation Summary

Formula Used

Capitalized Value = Net Rental Income*Years Purchase
C_v = R_N*Y
This formula uses 3 Variables

Variables Used

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

STEP 1: Convert Input(s) to Base Unit

Net Rental Income: 4800 --> No Conversion Required
Years Purchase: 11 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

C_v = R_N*Y --> 4800*11

Evaluating ... ...

C_v = 52800

STEP 3: Convert Result to Output's Unit

52800 --> No Conversion Required

FINAL ANSWER

52800 <-- Capitalized Value

(Calculation completed in 00.004 seconds)

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Created by Chandana P Dev

NSS College of Engineering (NSSCE), Palakkad

Chandana P Dev has created this Calculator and 500+ more calculators!

Verified by Mithila Muthamma PA

Coorg Institute of Technology (CIT), Coorg

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< Valuation Engineering Calculators

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Coefficient of Annual Sinking Fund given Sinking Fund

LaTeX Go Coefficient of Sinking Fund = Annual Installment/Sinking Fund

Annual Installment given Sinking Fund

LaTeX Go Annual Installment = Coefficient of Sinking Fund*Sinking Fund

Sinking Fund for Buildings

LaTeX Go Sinking Fund = Annual Installment/Coefficient of Sinking Fund

Capitalized Value Formula

LaTeX Go

Capitalized Value = Net Rental Income*Years Purchase
C_v = R_N*Y

What are the Disadvantages of Rental Method of Valuation?

The disadvantages are as under
1 If the actual rent is not fair rent, one cannot rely upon it.
2 A property of land and building valued together cannot be proportioned later.
3 Calculations of outgoings are often different.

How to Calculate Capitalized Value?

Capitalized Value calculator uses Capitalized Value = Net Rental Income*Years Purchase to calculate the Capitalized Value, The Capitalized Value formula is defined as the amount of money whose annual interest at the highest prevailing rate of interest will be equal to the net income from the property. Capitalized Value is denoted by C_v symbol.

How to calculate Capitalized Value using this online calculator? To use this online calculator for Capitalized Value, enter Net Rental Income (R_N) & Years Purchase (Y) and hit the calculate button. Here is how the Capitalized Value calculation can be explained with given input values -> 52800 = 4800*11.

FAQ

What is Capitalized Value?

The Capitalized Value formula is defined as the amount of money whose annual interest at the highest prevailing rate of interest will be equal to the net income from the property and is represented as C_v = R_N*Y or Capitalized Value = Net Rental Income*Years Purchase. Net Rental Income is calculated by deducting all outgoings from gross rent & 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.

How to calculate Capitalized Value?

The Capitalized Value formula is defined as the amount of money whose annual interest at the highest prevailing rate of interest will be equal to the net income from the property is calculated using Capitalized Value = Net Rental Income*Years Purchase. To calculate Capitalized Value, you need Net Rental Income (R_N) & Years Purchase (Y). With our tool, you need to enter the respective value for Net Rental Income & Years Purchase and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

How many ways are there to calculate Capitalized Value?

In this formula, Capitalized Value uses Net Rental Income & Years Purchase. We can use 1 other way(s) to calculate the same, which is/are as follows -

Capitalized Value = Net Rental Income*Years Purchase

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