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Cost information: The number of apartment complexes that will be built is 10. Each apartment complex consists of twenty 3BHK units (each unit is 2,250
Cost information: The number of apartment complexes that will be built is 10. Each apartment complex consists of twenty 3BHK units (each unit is 2,250 sft). The required total Land Area is 15 acres. The current market price per acre of land in the surrounding area is $100,000. Additionally, estimated land development costs and documentations are $350,000. The unit construction cost is estimated to be $110/sqft. The project is expected to be completed in one year. Any delay of the project completion will increase unit construction costs by 20% each year. Revenue information: Your goal is to complete the selling of the units within one year of units construction. The price trend of a similar 3BHK unit is about $190/sqft. Ignore the tax rate for now. A local bank is agreed to finance the entire project at a 5% interest rate. Your main goal is to identify the project viability and sensitivity. The project's success largely depends on the completion of the project within the due date and unit sales. 1. Construct a table showing NPV and Profitability Index at booking rates of 20%, 40%, 60%, 80%, 100%. Then, plot (excel bar chart or any other graph) the NPV, Pls, IRR at different booking rates. 2. Find out the number of units booking that makes NPV equal to Zero. 3. Construct a table showing NPV and Profitability Index when project completion is delayed by 12,24,36,48 and 60 Months. Then, plot the NPV, Pls, and IRR at different durations. 4. Find out the number of months in delay that make NPV equal to Zero. 5. Write a one-page short feasibility report based on your findings. Cost information: The number of apartment complexes that will be built is 10. Each apartment complex consists of twenty 3BHK units (each unit is 2,250 sft). The required total Land Area is 15 acres. The current market price per acre of land in the surrounding area is $100,000. Additionally, estimated land development costs and documentations are $350,000. The unit construction cost is estimated to be $110/sqft. The project is expected to be completed in one year. Any delay of the project completion will increase unit construction costs by 20% each year. Revenue information: Your goal is to complete the selling of the units within one year of units construction. The price trend of a similar 3BHK unit is about $190/sqft. Ignore the tax rate for now. A local bank is agreed to finance the entire project at a 5% interest rate. Your main goal is to identify the project viability and sensitivity. The project's success largely depends on the completion of the project within the due date and unit sales. 1. Construct a table showing NPV and Profitability Index at booking rates of 20%, 40%, 60%, 80%, 100%. Then, plot (excel bar chart or any other graph) the NPV, Pls, IRR at different booking rates. 2. Find out the number of units booking that makes NPV equal to Zero. 3. Construct a table showing NPV and Profitability Index when project completion is delayed by 12,24,36,48 and 60 Months. Then, plot the NPV, Pls, and IRR at different durations. 4. Find out the number of months in delay that make NPV equal to Zero. 5. Write a one-page short feasibility report based on your findings
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