Techniques Used in a Wind Power Valuation Engagement This article is aimed at valuing renewable interests or rights which is straight forward requiring basic application of valuation techniques. Appraisals that consider diminution of land estate values, damage assessments, complex end of life considerations, repowering analysis require more specific analysis and build up methods to establish defensible valuations. This article, part of a two-part series that focuses on renewable energy valuations, is written to provide a foundation for the novice appraiser who wishes to better understand renewable assets and the specific components that comprise a valuation. The forthcoming article will provide…
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A Data Analytics Approach The valuation of minerals and renewables falls outside the usual guidelines of real property appraisal, where real property broadly defined includes land, everything permanently attached to it, at, above, and below the earth’s surface and all the interests, benefits, and rights inherent in the ownership collectively referred to as “the bundle of sticks”. This is because most appraisers commonly value land, houses, ranches, surface structures, and businesses. Sub surface real property appraisals is more specialized where appraisers usually value royalty income based on production from reservoirs beneath the surface. This article provides an overview of the…
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The Role of the Forensic Accountant There are a number of instances where damage estimates are uncertain and where a customer is lost. What should one do in these instances? Losses sometimes require reasonable estimates, as well as a reasonable forecasting of the market—both for the generation of revenues and for mitigation. In the case where there is greater perceived loss than a single contract, a forecast is necessary to determine the long-term future lost net profits for the value of the lost customer. Dr. Kreuter shares his views on how to address these more complicated engagements.
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When it comes to money, “enough” is the hardest word to define in the English language. The challenge of defining “enough” extends to corporate managers deciding what cash balance is appropriate. Travis Harms, lead of Mercer Capital’s Financial Reporting Valuation Group, takes us through the data offering helpful tips. To read the full article in Mercer Capital’s Financial Reporting Blog, click: Is Cash Always King? This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. To subscribe to the blog, visit: http://mercercapital.com/category/financialreportingblog/.