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

Cost-volume-profit models, Bennis Shafts produces three types of golf club ...

Bennis Shafts produces three types of golf club shafts which it sells to golf club manufacturers.  Prepare ONE worksheet to answer the following questions and to determine the outc

Explain the rapid development of interest rate swap market, If the cost ben...

If the cost benefits of interest rate swaps would similarly be arbitraged away in competitive markets, what other descriptions exist to explain the rapid development of the interes

Discuss risk from perspective of capital asset pricing model, Discuss risk ...

Discuss risk from the perspective of the Capital Asset Pricing Model (CAPM). The Capital Asset Pricing Model or CAPM be able to be used to compute the appropriate required rate

Difference between debtcapital and equity capital, Difference between Deb...

Difference between Debtcapital and Equity capital Debtcapital comprises: Long-term loans (debentures, loan stock etc.) Preference share capital May also in

Strategic management, Develop and implement strategic plan using bounce fit...

Develop and implement strategic plan using bounce fitness as case study

Asset-backed securities, Introduction When financial assets...

Introduction When financial assets or bonds are pooled together and offered to the investors for receiving the inflow of funds from these underlying

hazard or risk , For this assessment, you are required to choose one workp...

For this assessment, you are required to choose one workplace hazard or risk to safety in the financial services industry that interests you. Prepare a report on the area you have

Nature of the business, Q. Nature of the business? The working capital ...

Q. Nature of the business? The working capital requirement of the firm basic depends upon the nature of the business. public utility undertaking like the water supply and rai

Working capital as a percentage of net sales, Q. Working Capital as a Perce...

Q. Working Capital as a Percentage of Net Sales? This approach to estimate the working capital requirement is based on the fact that the working capital for any firm is directl

Advantages and disadvantages of pay back period, Advantages: It is ...

Advantages: It is easy to calculate and catch. With the help of this technique, projects can be ranked in terms of their economic merits without much of complication.

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