With the exception of the changes noted below, keep the benchmark assumptions constant. Each scenario is to be recalculated independently; that is, each scenario is to be treated as a distinct variation from the benchmark. Assume that outside investors will become partners with Wildcat only if they believe they will receive an IRR of at least 20% and Wildcat will only close on the property if it believes it can earn a 50% IRR. Discuss whether or not the deal will proceed.

2. Evaluate the benchmark assumptions Zaski made. Would you have made different assumptions? What do you think is the fair market price for Financial Commons? Explain why your answer does or does not differ from $10,400,000 (calculating the going-in cap rate or discussing the projected price appreciation in 3 years may be helpful).

3. If you were an outside investor being approached by Wildcat and were shown the financial projections outlined above, what additional information would you seek before investing?