Question

i am valuing an on-going real estate project (residential). There have been certain cashflows already and hence, there is some existing cash in the company (which includes equity already put in). When i do my DCF of the future net cash flows, do i just add the existing cash or remove equity from the cash.

Answer 1

After you get the value of operating assets you add the cash to it.

Answer 2

BruLee is right! Just make sure your are not double counting the excess cash.