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Complete the cashflow forecast set out in the next tap taking into account the following information and comment on the outcome. QD has recently acquired

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Complete the cashflow forecast set out in the next tap taking into account the following information and comment on the outcome. QD has recently acquired two projects. One in the form of a piece of land and the other as land and infrastrucure. Project Applepie is a residential development in Istanbul with some retail, i.e. mixed use. The land was acquired for QR 900million in Yo and the senior development director has estimated that 1 billion will be required to complete the project. He has provided the projection attached. The retail is located at the bottom of the residential building will be retained for rental purposes, which is estimated to bring in QR 14 million per year from completion. At a vield of 7% this is value at QR 200m. The units comprising the residential can be sold for QR 4 million each and there are 300 units in total. It is anticipated that all units will be sold in Y4 after completion. Project Butterfly is a single office development in the City of London. The land was purchased for QR 330 million and another QR150 million of infrastructure costs were priced in. So total costs QR 480 million, which is scheduled for payment at the start of year 3 . With infrstructure already in place the project can be completed in just two years. Construction costs for the first year of construction will be QR 400 million and the second it will be QR 260 million. The building has been valued at QR 1.425 million and would be sold at following completion in Y5. See valuation attached. QD has annual operating expenses of QR 10 million and capital expenditure of QR 5 million per year. YOY1Y2Y3Y4Y5 Trading income Rental income Development costs Project Applepie Development costs Project Butterfly Operating expenditure Net operating cashflow Acquisition of development projects Capital expenditure Net investing cashflow Bank loan drawdown Project Applepie Bank loan repayment Project Applepie Bank loan drawdown Project Butterfly Bank loan repayment Project Butterfly Net financing cashflow Net cash inflow/outflow Opening cash Closing cash Devex projection Project Applepie The project is complete at the end of Y3

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