Prepare a cash flow schedule starting

Assignment Help Finance Basics
Reference no: EM132136358

PROJECT INVESTMENT ANALYSIS ASSIGNMENT - City Highrise Complex Development Option

The aim of this project is to introduce participants to concepts of Financial Feasibility Modelling and the use of spreadsheets for feasibility exercises.

Assume that you have been appointed as a financial consultant by an investment company to carry out a financial feasibility study for the proposed Office Development Complex Project.

Prepare a report with your recommendations to the Director of the Investment Company to justify the financial viability of this proposed development.

THE ANALYSIS

Part "A"

1. Calculate total cost of the Development at 1st July 2018 value.

2. Preparing a development plan (including the sale of the apartments) by assuming that demolition; land development and design and construction will start on 1st October 2018.

3. Prepare a cash flow schedule starting on 1st July 2018.

4. Estimate the net income on completion of project, 1st July 2021

5. Calculate:

- Total development cost

- Project finance cost

- Cost escalation.

6. Calculate the initial project development yield on completion of the project.

Part "B" - Assuming the entire facility will be sold to John Wiley Pty Ltd. on completion (2021) at a price that will be 5% yield to John Wiley Pty Ltd. on the first year of ownership 2021. Calculate for John Wiley Pty Ltd.

1. The Price at which John Wiley Pty Ltd. will purchase the entire facility.

2. The original developer's profit/loss.

3. Generate an Annual Net Cash Flow for John Wiley Pty Ltd. for 10 years.

4. Net Present Value of the John Wiley Pty Ltd.'s cash flow using 9% discount rate (Base year 2021).

5. Assuming John Wiley Pty Ltd. sell the Facility for $900 million at the end of 10th year of ownership (year 2031), calculate the Net Present Value of sale. (Base year 2021). Discount rate is 9%

6. Calculate the Profit & IRR John Wiley Pty Ltd. will make at 2021 value.

Part "C" - Assess the impact of changing the debt: equity ratio to 80: 20 and 50: 50.

Part "D" - 1. List all possible risks which may have an influence on this development proposal

2. Identify three (3) key risk areas that need further evaluation from the above list.

3. Carry out sensitivity/risk analysis on the above three key areas which may have greater concern on the project development.

Part "E" - List all assumptions at the front of your report.

RECOMMENDED REPORT STRUCTURE

  • Cover
  • Checklist
  • Letter to the Managing Director
  • List of Contents
  • Executive Summary - Outline range of Recommendations
  • Brief outline of the project
  • List of Assumptions
  • Methodology
  • Spreadsheet Computations & Graphs/Charts.
  • Risk and Sensitivity Analysis
  • Discussion and Recommendations
  • References.
  • Electronic files Submission - Saved in a USB with file names
  • Any other relevant information.
  • Copy of the assignment brief.

Attachment:- Assignment File.rar

Reference no: EM132136358

You assess the rupee return dividend plus price of these

The stock of Gandaki Ltd. (GL) performs relatively well as compared to other stocks during recessionary periods. The stock of Tanahu Ltd. (TL), on the other hand, does well du

Write a short report that compares the business performance

Write a short report that compares the business' performance in 201X with that in 20XY regarding its liquidity, financial flexibility, operating capability and profitability

Identify the portfolio investment opportunities

FIN201 - Investment Management Assignment. You are required to select four emerging markets, identify the portfolio investment opportunities which they offer to funds manager

Explain accountant role in changing depreciation methods

ACC701 Financial Accounting Assignment Question. In your response highlight ethics & governance, accountant's role in changing depreciation methods, stakeholders and the impa

What is the present value of cash outflows

Fez Fabulous Fabrics wishes to acquire a $100,000 multifacet cutting machine. What is the present value of cash outflows for each of these alternatives, using the after-tax c

How you would analyze the situation to settle the issue

Research an article on a current event that centers on a controversial issue where the two sides are claiming opposing views. Then describe how you would analyze the situati

Prepare a report for the couple answering the issues

FIN2IFP Introduction to Financial Planning - what price range is the couple reasonably able to afford and accordingly how much will they be required to borrow from a bank?

Prepare a report analysing the financial statements - tata

Prepare a report analysing the financial statements of a chosen company. Your financial analysis should focus on the profitability, turnover and financial position of the or

Reviews

len2136358

10/9/2018 10:39:15 PM

The final report due date is Week 10 – hand your assignment to your facilitator at the beginning of the class. After the submission you will be called for an interview to discuss your findings. This interview will be held within two weeks of your report submission. It is your responsibility to organise a time for an interview. If you fail to attend the interview, then the report will not be assessed and no marks will be given for this assignment.

len2136358

10/9/2018 10:39:09 PM

Submissions must be in a professional report format with clear subsections including an executive summary, table of contents, introduction, discussion, conclusion etc. All tables and figures must be accompanied by appropriate text (tables and figures which are not discussed within the text will not be assessed). Use appropriate cover sheet. Duly signed by all team members. Refer the Assignment Checklist before submission. The final report due date is Week 10 – hand your assignment to your lecturer at the beginning of the class.

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd