i got a 126 on my iq test

What better index then NPV and IRR would you reccomend for evaluating real estate investment and why?

If i am allowed to comment how the hell did hellbender get 126 on a highly flawed test taken off the internet.Forget the legitimacy and accuracy of the tests he couldn't possibly get 126 especially considering the average for his age which he acts below.

Thank you so much guys! Though I did not get to finish it, that chapter just taught me so much!

hellovic, if you got 126 on one of those internet tests then it means you're a retard, the average for those was moved to 150
which puts your real iq at about 70

@Artham,

That depends on the type of investment. NPV and IRR are general indexes meaning they can be used to pretty much any type of investment, but the real question is how to evaluate future cash flows. From financial analysis' point of view any future cash flow undergoes certain risks that have to be considered during the evaluation period. Real estate investment, whether building for rent or for sale, is usually very demanding when it comes to capital requirements, thus exposing itself to business cycle risk. I'd be focused mostly on shifts in demand on the market when evaluating an investment like that. We cannot perceive demand directly, but we can observe a few key indexes, for example with non-commercial investments it'd be mortgage backed credit volume (most of the time can be found ni reports that bank give out to financial overseers like KNF i Poland). The other factor might be surplus of supply, which we can observe by comparing the volume of offers on the market to absorptivity of the market (based on past data). With commercial investments it is not that easy since market participants are not homogenous, thus it's harder to see overall demand in the market, so most of the time risk is not used in terms of financial analysis but rather history of the counterparty and your firm. I hope that answers the question at least partially.

you just have to rip me down dont you well two words FUCK YOU i dont care

dear yuri hellovic benderov
why are you posting that if you don't care?
you obviously lack the intellectual capacity to understand the concept of hypocrisy...

I should rephrase my question mayby or rather expand on it's purpose.

A part of my job is preparing analisys, which are the basis for a bank or other creditor to finance an investment (mostly in real estat, thus my specifing in the question). My goal is not really to know if an investment is good or bad - I have other tools for that. I need to prove to smbd who doesn't know the market well enough that is good. Specifiacly to a financial analyst in the bank. As I don't have much (or rather any) theoretical background, I'm wondering what indexes do financial analysts belive in :).

As for cash flow in real estate - if you have good enough knowledge of the market it's not really hard to estimate it for rental investments (assuming you have a big enough scale). It is a lot harder, when you comercialise through sale - that's alweys a bit of a lottery.

So to sum up my question should be - if you were given a task to evaluate wheter an investment is worth financing by your employer (let's say it's a bank), what index would most convince you?

Why is everyone so harsh on Hellbender? He seems sound enough and (although I haven't been through the forum archive) as far as I can see doesn't have a bad word to say about the rest of you.

BTW Hellbender, I think its cool that as a just turned 16 year old warlight is your game of choice.

Sir F Bonds that Bombs, it's probably because he annoys people big time with his childishness and a disputable sense of humor and his impertinence towards people who diagree with the way he thinks or thorough disrespect towards those who dare to criticize the way he acts as an attention seeking imbecile. Also worth mentioning is the fact that some of the people here simply don't realize how they behaved back when they were at his age.

yours sincerely,
Indoor food-cave

PS: Yes, It is awesome that kids like hellbender chose to play such a game.. It is a definitely better choice than most of the popular arcades or even modern "strategy" games.

I don't blacklist hellbender because his immaturity is mildly entertaining.

We're harsh on Hell bender because he is almost single-handedly bringing this forum down.

@Artham

I think for that purpose IRR is best suited, everyone in finance knows it and it can be helpful when you compare investments to each other (for example you could say that IRR shows a better return than a risk free rate, interest of government bonds). From that perspective it is easy, but what a bank represantative may be more interested is some sort of risk measure, since crediting an investment for a bank exposes them to risk. From a financial standpoint IRR should suffice, but from a risk-management point of view you'll have to convince him/her that the investment will not fail (lack of demand, surplus of supply, dropping household prices etc.). If you have tools for that or you can present him your knowledge of the market that supports the investment being "good". I never had experience with credit scoring, I only worked in liquidity risk-management, but the ideas should be similar. I don't think I could help you more not knowing the specifics of the investment (for example if your company has great history with bank and lots of stable self-financing, you can argue that the risk of investment failure will not be transferred to bank, since your company has enough capital to cover it etc.).

Mistake in line #2:
*a better return by x%, simply stating it's better means very little.

Btw. I thought more people would be interested in maths, it seems no one here has problems with it.

What type of math were you referring to?

Any type :) I was referring to lack of questions about maths in general.

Szeweningen, I believe the reason that no one needs help on their maths homework is because they are capable of doing it. Even hellbender, though he does post useless material on the forums and is sometimes rather obscene, I admire for playing a game with this "sophistication" in a sense, because this really is a game that you need to use brainpower in (it is classified as a "strategy" game after all). Therefore, I think that people who play this game, must at least be somewhat smart if not child-geniuses.

And referring to your second line of rules: Topics must be directly or indirectly linked to mathematics or economics [...] I can talk about anything as long as there is math involved?

e.g. Talking about cheese, which leads to developing a statistic of the ratio between cheese lovers: cheese haters.

Also, is politics fair play? Or is that not allowed?

what are derived functions for?
my math teacher wasn't capable of answering this question, so we just sat and learned stuff while her best explanation was "to know how the calculator does it usually" -.-
11th grade french math ftw