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React: The financial pro forma for a property represents the financial performance which will be realized...

React: The financial pro forma for a property represents the financial performance which will be realized by the property, and as such reflects the risks of the investment.

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The financial pro forma for an asset is perfect representation of cash flow associated with the asset. The financial pro forma is consolidated presentation of income net of all expenses. Such pro forma provides complete detail about future associated income, which can be used for capital budgeting and long term decision making. The analysis become very critical for investment in property mainly in investment grade property. The analysis of such proforma will not only explain about the investment opportunity but associated risk as well.

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