Common use of Preconditions for Application of the Income Approach Clause in Contracts

Preconditions for Application of the Income Approach. The income approach refers to such an assets appraisal approach that the value of the appraised assets is decided by means of estimating the expected return of the appraised assets and converting them into present value. Preconditions for application of the income approach as follows: (1) The clear property right of the enterprise assets appraised; (2) The future income of enterprises able to be monetarily quantified; (3) The future operating risk of the enterprise able to be monetarily quantified. Suichang Jiulongshan Hydropower Development Co., Ltd. Share Transfer Project

Preconditions for Application of the Income Approach. The income approach refers to such an assets appraisal approach that the value of the appraised assets is decided by means of estimating the expected return of the appraised assets and converting them into present value. Preconditions for application of the income approach as follows: (1) The clear property right of the enterprise assets appraised;; Zhejiang Jingning Yingchuan Hydropower Development Co., Ltd. Share Transfer Project (2) The future income of enterprises able to be monetarily quantified; (3) The future operating risk of the enterprise able to be monetarily quantified. Suichang Jiulongshan Hydropower Development Co., Ltd. Share Transfer Project.