Income Approach


One of three real estate appraisal methods used to estimate the value of real estate. The Income Approach is computed by dividing Expected Annual Income by Capitalization Rate.

Income Statement


Also known as a profit and loss statement (P&L), it indicates the sources and amounts of revenue, amounts of expenses, and profits or losses. It can be prepared on an accrual or cash basis.

Inflation


A rise in the general level of prices as purchasing power decreases, resulting in a loss of the value of currency.

Interest Rate


The price, expressed as a percentage, charged by a lender to a borrower as a return on its investment. Usually expressed as a percentage of the total amount loaned.

IRR


The annualized effective compounded rate of return that is earned on invested capital, i.e., the yield on an investment.