Question
please look at the excel; then Provide an analysis of the financial risks associated with each of the acquisition scenariio? please one page paragraph, What
please look at the excel; then Provide an analysis of the financial risks associated with each of the acquisition scenariio? please one page paragraph, What is the impact on your valuation if direct costs escalate at a rate of five percent (5%) at the same time the house price appreciation rate drops to
| Land Price = | Cost Escalation | |||||
| $ (10,973,873) | 0% | 3% | 4% | 5% | 7% | |
| Sale Price Appreciation | 2.00% | $ (10,752,474) | $ (9,934,309) | $ (9,655,379) | $ (9,373,322) | $ (8,799,775) |
| 3.00% | $ (11,796,255) | $ (10,973,873) | $ (10,693,458) | $ (10,409,877) | $ (9,833,159) | |
| 4.00% | $ (12,877,931) | $ (12,051,152) | $ (11,769,192) | $ (11,484,022) | $ (10,903,998) | |
| 5.00% | $ (13,998,606) | $ (13,167,248) | $ (12,883,676) | $ (12,596,852) | $ (12,013,382) | |
| 6.00% | $ (15,159,410) | $ (14,323,283) | $ (14,038,033) | $ (13,749,485) | $ (13,162,427) | |
| 7.00% | $ (16,361,499) | $ (15,520,406) | $ (15,233,409) | $ (14,943,066) | $ (14,352,272) | |
| 8.00% | $ (17,606,052) | $ (16,759,792) | $ (16,470,976) | $ (16,178,765) | $ (15,584,081) | |
| 9.00% | $ (18,894,278) | $ (18,042,640) | $ (17,751,932) | $ (17,457,777) | $ (16,859,045) | |
| 10.00% | $ (20,227,407) | $ (19,370,176) | $ (19,077,500) | $ (18,781,322) | $ (18,178,379) | |
| 0.00% | $ (8,774,293) | $ (7,964,054) | $ (7,687,911) | $ (7,408,717) | $ (6,841,129) | |
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The AMA Handbook Of Financial Risk Management
Authors: John J. Hampton
1st Edition
0814417442, 978-0814417447
