developer’s budget calculation, Finance Basics

developer’s budget calculation, Finance Basics

Assignment Help:

A prospective developer is considering purchasing a site for the construction of a ‘Business Village’ at a price of £750 000. It will provide a let-able office floor space of 17 500 m2. The estimated construction costs of the office block is £9 450 000. The contract period is assessed at 2 years; and that when fully let, the office block is expected to have an annual rental value of £1 400 000, with the landlord’s annual outgoings estimated at £300 000. Legal, agency and advertising fees are assessed at £420 000. The client requires a return of 9% on the office block. Professional fees are 12% of the construction costs, and finance is at 9%.
Set out a developer’s budget calculation to determine the profitability of the development.

Related Discussions:- developer’s budget calculation

How society's interests can influence financial managers, Describe how soci...

Describe how society's interests can influence financial managers. Occasionally the interests of a business firm's owners are not similar as the interests of society. For exam

Formation of sole proprietorship business, Formation of Sole Proprietorship...

Formation of Sole Proprietorship Business When an individual plans to start a business, his or her main objective is to earn profit but there are a number of factors to take in

Money and banking course, Ask questioSay that a buyer of bonds values good ...

Ask questioSay that a buyer of bonds values good bonds at $500 and values bad bonds at $250. Sellers of both good and bad bonds value them at $350. If the fraction of good sellers

Compute appropriate net present value, Imagine Joy is the project coordinat...

Imagine Joy is the project coordinator in a company where four projects are running concurrently. He's employed you as the senior business analyst to perform some financial calcula

Average rate of return - down payment, 1. Determine what is the future val...

1. Determine what is the future value of $20 a week for 10 (ten) years at 6 percent interest? Assume the first payment takes place at the end of this week. 2. Kristina started

Necessity of risk adjusted hurdle rates for companies, Discuss the necessit...

Discuss the necessity of risk adjusted hurdle rates for companies with diverse lines of business. Every company invests in new projects based on the expectation of earnings

Example of stock market index, Example of Stock Market Index The follo...

Example of Stock Market Index The following six companies constitute the index of democratic republic of Kusadikika. Company A B

Australi a, i ordered case study 1 susam and malcom. when i open the docume...

i ordered case study 1 susam and malcom. when i open the document is completely different, not the same case study an is only relivent in the usa not australia... do you have the c

Cost of finance - capital structure, Cost of Finance - Capital Structure ...

Cost of Finance - Capital Structure This is the price the company pays to retail and acquire finance. To get finance a company will pay implicit costs that are commonly recogn

Finance model paper questions, 1. Suppose you would like to buy a house an...

1. Suppose you would like to buy a house and you decided you can pay 3500 per month for 30 years. Your bank has approved you for a 30-year fixed rate mortgage loan at a quoted AP

Write Your Message!

Name

Email id

Message

Verfication Code

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!

Submit Assignment

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