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Hey all,
Something that many of us might oversee!!
With all types of cashflow generating assets how do we account for inflation. For example, i am earning a net income of $5000 from a wraped property. However, that $5000 is worth less the following year due to flationary factors!!
Please Explain!!!
Thanx again!!
“Act on facts and not opinions, let the figures to the talking”
Well, that is just like interest rate being part of the evil that we all have to deal with!
In my past investment, I ensure that my ROI would well exceed the combined cost on loan AND projected inflation for the investment duration. You migth also want to apply NPV & FV with inflation added into your ROI estimation.
Regards,
Hiu
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