Dictionary of Business Terms: pencil out
pencil out
estimate in approximate figures whether a proposed investment is expected to be profitable.
Dictionary of Real Estate Terms: pencil out
pencil out
estimate in approximate figures whether a proposed investment is expected to be profitable.
Example: Net Operating Income (NOI) for a proposed investment was estimated at $10,000 and compared with an offering price of $200,000. The resulting expected cash-on-cash return of 5% did not pencil out because the buyer's objective was a minimum return of 8%.
