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

The lcm rule, Require the relevant authoritative literature on the lower- ...

Require the relevant authoritative literature on the lower- of- cost- or- market rule for valuing inventory using the FASB's Codification Research System. Clarify the circumstance

Tests of term structure of interest rates theories, Tests of Term Structure...

Tests of Term Structure of Interest Rates Theories Various tests have been conducted mainly in USA and they show that all the three (3) theories have some validity and therefo

Determinants of Interest rate, What are the factors that affect the interes...

What are the factors that affect the interest rate and how?

Nature and function of money, what is the nature and function of money?

what is the nature and function of money?

What would be the expected return of the portfolio, A Ltd.'s share gives a ...

A Ltd.'s share gives a return of 20% and B Ltd.'s share gives 32% return. Mr. Gotha invested 25% in A Ltd.'s share and 75% of B Ltd.'s shares. What would be the expected return of

Financial planning processes, explain the financial planning process in a p...

explain the financial planning process in a private limited company

Explain the framework put forward by the basel committee, Question 1: a...

Question 1: a) Explain the framework put forward by the Basel Committee to ensure that banks and supervisors give appropriate attention to the second (supervisory review) and

Profit maximization - objectives of business entity, Profit maximization - ...

Profit maximization - Objectives of Business Entity Conventionally, this was considered to be the main goal of the firm. Profit maximization refers to getting the highest poss

Compute the black-scholes price of one reverse convertible , Instructions ...

Instructions 1 This case study counts as part of your group project. 2 Project Group: You must complete this assignment together with the group that you initially registered

Role of cma - share prices, Role of CMA - Share Prices Role of CMA in ...

Role of CMA - Share Prices Role of CMA in determination of share prices 1. The CMA does not in any type of way influence share price of quoted companies. 2. The prices o

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