Assignment 3: Domus Developments: To Build or Not to Build?

The project manager at a development company is contemplating the future of the firm's next innovative development project, which had originally been conceptualized in 2008, but for various reasons, had not yet come to fruition. The project manager wants to evaluate the venture from a financial viewpoint, including the company's ongoing cash position should the company go ahead with the building process; he also wants to assess other relevant qualitative considerations. Alternatively, the company could sell the land, which has appreciated considerably in value. All decisions would take into account the company's goals and reputation in the industry.

Harvard Business Coursepack. This course will utilize three case studies from the Harvard Business for Education. Please follow the link to sign-up for and purchase the coursepack:

https://cb.hbsp.harvard.edu/cbmp/access/43420441

All three required case studies are contained within the coursepack and will be purchased through this link.

Product Number - W15174-PDF-ENG

Case Study Questions:

1. Identify Domus' corporate strengths and weakenesses.
2. Analyze the company's potential customers and the demand for North Point in the current market.
3. What are the pros and cons of developing North Point versus selling the land? What implications can be drawn from this analysis?
4. Prepare a 24-month cash budget for building North Point, starting in May 2014.
5. As Mescia, what is your decision? Be prepared to defend this decision