Jimmy Baldwin is the Finance manager at MountainFire $,$ a private company which owns and rents out flats in the north west of London. The flats are in an exclusive part of the Borough, some are sold and others are rented. In $2019,86$ of the $136$ flats were rented and the rest are owner occupied. MountainFire earns its revenue from the leasehold payments, service charges and rent from these flats. The flats are built to a high specification so the revenues for the Company are high. However, the flats are now seen as dangerous due to the type of cladding used when the whole development was initially constructed. The number of rented properties have significantly fallen and the owner occupiers are now pursuing MountainFire to replace the cladding. The fall in revenue from the empty flats is of great concern to Jimmy Baldwin, and additionally the value of the whole development has taken a nosedive. The project cost for replacing the cladding is estimated at $6\mathrm{.}8$ million pounds. MountainFire is willingly to put up half a million pounds to the repairs; it needs to find the rest. Mountainfires lenders wanted to renegotiate the costs of repayment due to this fall in revenue are now worried about their financial investments; they have refused to agree to finance the cladding costs. The cladding project costs would need to be financed and also the rate of return need to be worked out. MountainFire has also now to improve its operational and financial situation in order for the project to be viable and offer at least a minimal return The choice for MountainFire is stark, the organisations has seen a fall in revenue, a fall in the value of investments and also negative publicity surrounding cladding has made it difficult to rent or sale and also its brand has been tarnished.Jimmy Baldwin has decided to enlist the services of a project finance consultant who will outline a plan to finance the cladding project. The Company needs to find $6\mathrm{.}3$ million. KIRIT PATEL MGT $3021$ PROJECT FINANCE AND RISK. ASSIGNMENT ONE FEBRUARY $20241[$Document title$]$ QuestionsYou are the Consultant hired by the organisation and have been asked to detail a plan $($with supporting evidence$)$which provides MountainFire with:

$1).$ Taking the above into

consideration develop :

a$)$the project finance plan giving a full rationale for the plan and its potential benefit to mountainfire $(20\%)$

b$)$c$)$An excel $($or table format$)$ based costing illustration of the Net Present Value of the potential investment i$.$e$.$ where will the money come from sources and costing over your choice period $(15\%)$

c$)$ a proposal as to how MountainFire are able to improve its revenue stream from future rental income $(10\%)$