UV 101 - Part 2 - What is a building worth?

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Class II: What is a building worth?

All buildings transform one set of inputs (products and/or $) into an output (products, research, or $). The largest and most overlooked cost is time. Learning to measure profit over time is the heart of understanding the value of buildings.

We will start with estimating the value over time of an existing building.

1. Projected Profit (PP)

In real world business, a rule of thumb used to estimate the value of a business is its projected profits over 10 years. This rule fits some industries better then others. In Kapilands, a day is roughly equivalent to a year in the real world. We will use a power plant and a fruit plantation as examples.

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