+61-413 786 465

[email protected]

## Management Studies

 Management Theories Operation Management HR Management Project Management Business Management Operation Research Marketing Management Strategic Management Management Information System

PROJECT INVESTMENT ANALYSIS ASSIGNMENT -

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
• 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 Files.rar

Project Management, Management Studies

• Category:- Project Management
• Reference No.:- M93122607

Have any Question?

## Related Questions in Project Management

### Case study and research project clairicationfinding a case

Case Study and Research Project Clairication Finding a case for the research project does not mean that you are limited to the company identified in the case. Rather it is to identify an issue identified in the case that ...

### 42908 assessment task - project proposal1 executive summary

42908 Assessment Task - Project Proposal 1. Executive Summary - Brief overview of project, main aim of project, potential findings and conclusions. 2. Introduction - Presents general project area, relevance of project, s ...

### How might researchers study the effectiveness of inclusive

How might researchers study the effectiveness of inclusive leadership with regard to overall organizational effectiveness and competitiveness?

### As a project manager answer these questions1 a how does the

As a project manager answer these questions, 1) a. How does the weighted scoring approach avoid the drawbacks of the NPV approach? b. Can the two approaches be combined? if so How? How are you going to apply this piece o ...

### Assessment descriptionyou are required to read a case study

Assessment Description You are required to read a case study based on a fictional company and prepare a Performance Evaluation Video Presentation based on the information contained in the case study. Case Study - DeGrand ...

### Presentation and written assessment -the argumentative

Presentation and Written Assessment - The argumentative essay must be 1500 words in length. The presentation is about 10-15 minutes long depending on the size of the group. Task Description: The objective of this assignm ...

### Define quality management philosophy and identify which

Define quality management philosophy and identify which quality guru worked with Toyota to make it a success?

### Project managment1explain what is meant by the following

Project managment 1. Explain what is meant by the following: "The project scope statement should not be built in isolation." 2. Discuss project management related problems created due to "scope creep." Each question shou ...

### Project management assessment - research studypurpose of

Project Management Assessment - Research Study Purpose of the assessment - Develop skills in Project communication planning. Communication is Key to Successful Project Management. The cases illustrate different approache ...

### What is the current state or condition of information

What is the current state or condition of Information Technology Project Management? What are the challenges and complexities faces by many IT Project Managers of today?

• 13,132 Experts

## Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

### Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

### Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

### Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of \$ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

### Compute the present value of an 1150 payment made in ten

Compute the present value of an \$1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

### Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of \$ 699 per year for 19 years, given a discount rate of 6 percent per annum. As