found around the area, following the guidelines of the Environment Protection Authority (EPA) of Victoria, a specialist contractor was employed by the Southern Globe to inspect the site for any possible contamination and required treatment before using for any development. The investigation report suggests that the ground is badly contaminated with PFAS resulted from possible spills of highly hazardous chemical in the past. Despite Southern Globe being highly opportunistic in capturing the significant market share by developing a few modern residential towers as soon as possible, such finding of contamination has left no choice but to treat the site and leave it for at least THREE years before start of any construction activity. To maximise the opportunity of the investment, Southern Globe has been looking to buy a neighbouring piece of Forest Land containing some high-value indigenous vegetation including a wide variety of Floras and Faunas. While the council sees the value in selling this piece of Forest Land for the developer to use as their investment options, a detailed environmental assessment suggests that there will be about $2.5 million per annum damage in the ecological front. However, upon completion of the development options being considered by the Southern Globe, there is a potential for realising on average $3.8 million per annum indirect benefits to the community from the economic and social perspectives. The cost of the site is $3.1 million inclusive of all the costs associated in the transaction. It has been estimated that about $450,000 needs to be spent for treating the site contamination immediately after taking the possession. The site is then left for 3 years before start of the construction. The Southern Globe is planning to use this 3 years non-active period for obtaining all the necessary permits required for the development. While numerous options of development have been considered based on the demographic distribution, geographic location and accessibility of the site, these options have currently been reduced to only two for further The first option is the development of a studio apartment for students' accommodation due to the existence of a few educational institutions in the vicinity. The second option is the development of a contemporary apartment building for promoting modern and active lifestyles within this well sought after inner city location. Being a technical expert in project evaluation and decision analysis, you have been hired by the Southern Globe to carry out the necessary analysis on these alternatives and make a recommendation for investment. Based on the available data supplied in Table 1, model the alternatives and present your findings with a professional Project Appraisal Report (PAR). construction period at a 6 monthly interval and with the first instalment being drawn at the beginning of the construction period for both the options. Modelling techniques Following modelling techniques have been used to model the two scenarios (alternatives). a) EUAC (brief explanation, significance, pros and cons, applicability) b) NPV c) NPV/C d) IRR e) Payback f) Dep g) LCC found around the area, following the guidelines of the Environment Protection Authority (EPA) of Victoria, a specialist contractor was employed by the Southern Globe to inspect the site for any possible contamination and required treatment before using for any development. The investigation report suggests that the ground is badly contaminated with PFAS resulted from possible spills of highly hazardous chemical in the past. Despite Southern Globe being highly opportunistic in capturing the significant market share by developing a few modern residential towers as soon as possible, such finding of contamination has left no choice but to treat the site and leave it for at least THREE years before start of any construction activity. To maximise the opportunity of the investment, Southern Globe has been looking to buy a neighbouring piece of Forest Land containing some high-value indigenous vegetation including a wide variety of Floras and Faunas. While the council sees the value in selling this piece of Forest Land for the developer to use as their investment options, a detailed environmental assessment suggests that there will be about $2.5 million per annum damage in the ecological front. However, upon completion of the development options being considered by the Southern Globe, there is a potential for realising on average $3.8 million per annum indirect benefits to the community from the economic and social perspectives. The cost of the site is $3.1 million inclusive of all the costs associated in the transaction. It has been estimated that about $450,000 needs to be spent for treating the site contamination immediately after taking the possession. The site is then left for 3 years before start of the construction. The Southern Globe is planning to use this 3 years non-active period for obtaining all the necessary permits required for the development. While numerous options of development have been considered based on the demographic distribution, geographic location and accessibility of the site, these options have currently been reduced to only two for further The first option is the development of a studio apartment for students' accommodation due to the existence of a few educational institutions in the vicinity. The second option is the development of a contemporary apartment building for promoting modern and active lifestyles within this well sought after inner city location. Being a technical expert in project evaluation and decision analysis, you have been hired by the Southern Globe to carry out the necessary analysis on these alternatives and make a recommendation for investment. Based on the available data supplied in Table 1, model the alternatives and present your findings with a professional Project Appraisal Report (PAR). construction period at a 6 monthly interval and with the first instalment being drawn at the beginning of the construction period for both the options. Modelling techniques Following modelling techniques have been used to model the two scenarios (alternatives). a) EUAC (brief explanation, significance, pros and cons, applicability) b) NPV c) NPV/C d) IRR e) Payback f) Dep g) LCC