From Assumptions to Accuracy: TVM in Feasibility Analysis

Project feasibility can’t rely on raw numbers—it needs time-sensitive analysis. That’s where the time value of money (TVM) plays a crucial role. TVM helps turn assumptions into accurate forecasts by considering how long it takes to earn or spend money. Feasibility reports often involve timelines, phased investments, and staggered revenue. Using TVM ensures these time gaps are properly accounted for, revealing whether a project truly delivers value. It helps filter out overestimated gains and ensures each decision considers opportunity cost. For real estate professionals, this shift from assumption to accuracy is what makes or breaks project success.