Your boss, Angus Cartwright, has just returned from a meeting with John and Judy DeRight. The DeRights have asked him to identify and recommend investment opportunities in the greater Washington D.C. area. Angus has presented them with the facts in the case and, based on a few back of the envelope calculations, the DeRights have decided that they are interested in investing in one of the two office buildings under consideration, either 900 Stony Walk in Montgomery County, Maryland or The Fowler Building in Arlington, Virginia.

Angus is about to leave for his annual visit to the homeland and asks you to pick up where he left o. First, you will need to develop a pro-forma cash flow statement and associated exhibits for both buildings. Once the basic cash flow information and investment performance measures have been compiled and analyzed, you are to make a recommendation to the DeRights; informing them of the risks and returns associated with each property.

Which property do you recommend? Why

Does it meet the DeRights investment objectives?

Why is the property preferred?

Detailed analysis Extended summary with more detail regarding risk and return

Discuss measures of value, return and related performance measures and compare the two properties in these terms.

Discuss the risks and unknowns associated with each property and compare the two properties in these terms.

Are there other factors that come into play?

Identify your recommendation.

Explain your choice in terms of risk, return and how the property meets the investment objectives of the DeRights.