The Final Assignment requires you to apply your tools to the Sofia Lofts case, but under a new set of assumptions on page 11 of the case.
First re-read the Sofia Lofts case, then click here to download the new page 11. Specifically, you are to write up a brief analysis of the case with this new page 11, primarily using your Toolkit in the analysis.
Assume for Assignment purposes that your boss has asked you to provide an analysis of the proposed Sofia Lofts development.
Your boss is considering investing in the deal, and wants your view of the project.
Make a recommendation on whether you believe your boss should invest, using the tools below.
In addition to turning in a written analysis, you will also turn in an Excel file demonstrating your answers, formulas, and all work.
Tools/items which you are required to use include:
Market Value Today
Gain/Loss Since Development (excl. cash flow)
Return on Assets
Return on Equity
Loan Constant
Development Cost Per Unit
Most Profitable Unit Style
Construction Loan Interest
In addition, select no less than 5 additional tools which you believe relevant to understanding the Sofia Lofts development. The additional tools selected should be qualitative in nature, as opposed to the quantitative tools used above.
Do not worry about any ambiguity or information which is not provided. Frequently, we are asked to review deals with limited and imperfect/unverified information. Do your best to demonstrate that you know how to apply tools to analyze a development project, and make a coherent and well thought out recommendation.
Attachment:- Sofia lofts.rar