Calculate total development cost, Financial Management

Assignment Help:

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.

 


Related Discussions:- Calculate total development cost

Explain in detail about the cost of capital, Explain in detail about the Co...

Explain in detail about the Cost of Capital Every type of capital used by the firm (preference shares, debt and equity) must be incorporated into the cost of capital, with rela

Genesis Energy Capital Plan Report, Calculate the firm’s WACC. Prepare and ...

Calculate the firm’s WACC. Prepare and analyze each planned capital expenditure. Evaluate, rank, and recommend the capital expenditures according to beneficial value to the organiz

What do you mean by s corporation, Q. What do you mean by S Corporation? ...

Q. What do you mean by S Corporation? S Corporation - An S Corporation is a corporation that, under Internal Revenue Code, is normally not subject to federal income taxes. In i

Preferred stock, Preferred Stock This is a category of capital stock th...

Preferred Stock This is a category of capital stock that will gives its holders preference  over common stockholders in the distribution  of earnings  or rights to the assets o

Illustration of valuation using multiple discount rates, Illustration  ...

Illustration  Let us assume that Vishal Mehta & Co., (from Illustration 1) is using the following discounting rates in place of one rate:

Determine the post-merger eps and post-mergershare price, Post-merger EPS a...

Post-merger EPS and post-mergershare price An estimated post-merger EPS can be calculated by: (Combined earnings) / total shares after merger An estimated post-merger s

Is it possible to make money in the stock market, Is it possible to make mo...

Is it possible to make money in the stock market when the quotations are going down? What is credit sale? There are three simple moves to make money when prices are going down:

Formulation of collection policy, Q. Formulation of Collection Policy ? ...

Q. Formulation of Collection Policy ? Formulation of Collection Policy:- The third characteristic of the receivable management is to formulate a collection policy. Collection p

Explain money have time value, Why does money have time value? Positive i...

Why does money have time value? Positive interest rates point out that money has time value.  While one person lets another borrow money, the first person needs compensation in e

A/a2, A/A2 is generally the second- or third-highest rating that a rating a...

A/A2 is generally the second- or third-highest rating that a rating agency gives to a security or carrier. This rating indicates that there is a comparatively low risk of default a

Write Your Message!

Captcha
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!

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