Calculate total development cost, Financial Management

A developer has purchased a commercial office site in Melbourne and wishes to develop a building which will be sold to an institutional owner before completion of the building.  

All costs and outgoings related to the development are to be included in the Total Project Cost, for the purpose of calculating the developer's profit, and thus the viability of the project.  

The institutional purchaser will buy the project from the developer at the end of the construction period for a price which will return the owner 8% on his total investment in the first year of ownership, assuming the building is fully occupied by tenants.  

1.  Preparing a design of construction program assuming that demolition and design and construction will start on 1st July 2010.

2.  Prepare a cash flow schedule starting on 1st July 2010.

3.  Estimate the net income on completion of project.

4.  Calculate.

  -  Total development cost

  -  Project finance cost

  -  Escalation cost

5. Calculate the initial project development yield.

 

Posted Date: 2/22/2013 7:54:25 AM | Location : United States







Related Discussions:- Calculate total development cost, Assignment Help, Ask Question on Calculate total development cost, Get Answer, Expert's Help, Calculate total development cost Discussions

Write discussion on Calculate total development cost
Your posts are moderated
Related Questions
Name two patterns of cash flows for a share of common stock. How does the market determine the value of the most common cash flow pattern for common stock? Cash flows for a sha

What are some of the government needs imposed on a public corporation that are not imposed on a private, closely held corporation? Public corporations should submit audited finan

how do we compute for benefits can derrive out of using lockbox system?

Explain the Sovereign Risk Sovereign risk denotes a country imposing exchange restrictions on a currency included in a swap making it expensive, or not possible, for a counterp

Capital market: The term capital market is used to denote all the activities of the primary and secondary markets. It can also refer to the market for equity and debt instrumen

Managing Risk and Contingency Plan: An essential component of any financial management framework is the validation and protection of the information contained in the system. In

How do we calculate the payback period for a proposed capital budgeting project?  What are the main criticisms of the payback method? We calculate the reimbursement period for

Q. Evaluate of Risk-Adjusted Discount Rate? Illustration: - From the following date state which project is preferable: Year Project A Proj

Evaluate the importance of leverage in financial management of a small scale company

Q. Disadvantages of just-in-time inventory management? A JIT inventory management system mayn't run as smoothly in practice as theory may predict since there may be little room