Well as rent would be paid monthly for agreements sake instead of $300k on a million over 7 years it's worth circa $370k. Could be more if the rent was invested at higher than the 4.5% yeild. I.e if the rent was put in the bank.
It's still a good deal for the operator, but it's not free.
But the DMF is all upfront - aka a way better deal. Time value of money and all that
05-07-2024, 05:01 PM
Daytr
Quote:
Originally Posted by ValueNZ
But the DMF is all upfront - aka a way better deal. Time value of money and all that
Sure, as I said as long as it's not being double counted in your value model on profits in sales.