Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

INVESTMENT C This property is a freehold; grade A, 850 sq.m. office in Nicosia's CBD (commercial and business district). A Russian company that was


image text in transcribed

INVESTMENT C This property is a freehold; grade A, 850 sq.m. office in Nicosia's CBD (commercial and business district). A Russian company that was occupying the property was paying 11/month per month but they have just moved out. Another company from Germany is interested to rent the office and they are offering a 5 year contract (FRI lease) but they will move not earlier from 6 months and no later than one year. They are willing to pay the amount of 15,000 as a reserve deposit and 12/sq.m. per month (with a 2% yearly increase) as soon as they move in. Acquisition and sale fees are estimated at 4% of price. Assignment TASKS In every case you should identify the 'sensitive' values and apply a proper sensitivity analysis as presented in the workshop class. You should provide the client an analytical spreadsheet of every investment and an overall spreadsheet that will include the sensitivity analysis. You should also write a detailed technical letter (600 to 1000 words) explaining your analysis and clarifying your choice. The client is offering you a 10% bonus (marks) if you show him skills of risk - adjustment techniques (analysis that incorporates risk considerations)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Managerial Finance

Authors: Lawrence J. Gitman, Chad J. Zutter

13th Edition

9780132738729, 136119468, 132738724, 978-0136119463

More Books

Students also viewed these Finance questions