Valuing Developable Land at Canary Wharf In valuing the developable land at Canary Wharf, there are several factors to take into account. Namely, it is crucial to decide on an appropriate rate at which to discount the projected cash flows for the property. The developable properties of Canary Wharf come with considerable risk. For example, the London office market downturn, as well as significant market hits for the large financial services tenants of Canary Wharf, presents serious tenant lease up and lease covenant negotiation risks. How long will it take to attract quality tenants to the buildings, especially as financial services tenants are currently stressed? Additionally, the requirement for further planning consent on the buildings indicates that construction on three of the sites can not commence for a number of years. How can one accurately predict the market in the future? Will the London Office market significantly improve or continue to decline? What will interest rates look like? Songbird must consider the risk of valuing such sites several years into the future. Further, Songbird must consider the weighty transportation risk. If the Crossrail project does not come to fruition in a timely manner with necessary approvals, development will not proceed as planned, causing cost overruns and heavy construction delays. Assuming that Canary Wharf is able to get the necessary transportation approvals, Canary Wharf's projected cash flows should be discounted at 12.5% in order to mitigate risks to be faced. Given this discount rate, as well as considering all taxes, debt obligations, rents and rent-free periods, and all construction costs, an appropriate bid on the developable sites at Canary Wharf is ₤809,000 (the Net Present Value of the cash flows, discounted at 12.5%). Please see Exhibit 1 for a detailed pro forma of all projected cash flows. It is important to clarify some key assumptions that were made in valuing the properties to this NPV. First, the project yields a high IRR of 73 %, due largely in part to the sale of each building upon lease up. For the cash flow projections, it was assumed that all buildings are sold 18 months after construction completion. Therefore, with the exception of the last building to be sold, Heron Quay, the buildings are sold toward the end of their free-rent periods and no rent is collected.
The chart above paints a solid picture of the five-number summary, mean, mode, range, and standard deviation for the 40-gulf view condominiums sampled for our analysis. When looking at our analysis of golf view condominiums we can see that a large price range exists with one unit selling for $189,000 on the low end and another selling for $935,100 on the high end with an average selling price of $606,590. Gulf view condominiums have a range of 276 days on the market with units selling in as little as 22 days and others taking as long 298 days. According to the Interquartile Range Rule for...
In the novel Grand Avenue. Greg Sarris uses the theme thread of poison to connect all of his separate stories about the Toms’, a Pomo Indian family. He proves that the roots of a family are the basis which gives the family its structure, even if those roots are bad. In the Toms’ family they’re roots were poisoned from the very founding of the family starting with Sam Toms’. His poison was not the fact that he tried to steal a married woman away, but that he was filled with secrets, deceptions, and self hatred. His family was founded on these poisened roots and passes the poisen down generation after gerneration. The only way to stop the poison, or inner self hatred taken out in other forms, was to let go of past and talk about the secrets and lies. Once a person does this they are able to learn from their mistake , in a sense the break free from the poison. If Sam Toms’ , the founder or root of the family,would have broken free of his poisen by talking about his mistake he made, his whole family per haps would have turned out completely different. As a result of his secrets and lies his family was rasied to make the same immoral desisions as he made throughout his life. His family, like Sam, didn't take responcilblity for their mistakes, which spread the poison onto the next generation. Tracing the poison throughout the Tom’s beginning at the roots, shows just how important the roots indeed are.
Earlier 2002, the stock price of Agnico-Eagle Mines sharply decreased by $1 finally closed at $13.89. This price has reached one of the lowest level, from the company's historical perspective. As a professional equity portfolio manager, who has a large number of AEM stocks on hand. Acker and his team are necessary to find a proper way to estimated the fair value of AEM as well as its equity. Discounted Cash Flow (DCF) has been chosen to do this job. The theory behind DCF valuation approach is that the firm's value can be estimated by using the expected future free cash flow discounted by an appropriate discounted rate (Koller etc 2005). However several assumptions need to be clearly examined within this approach. The following sections are showing the process of DCF step by step.
Situated on the Monongahela River is the neighborhood of Southside Flats. Within its boundaries is one of the entertainment hubs of Pittsburgh. The main thoroughfare of E Carson St. is inhabited with bars, restaurants, and nightclubs.
Rebecca Young has finished taking her Master of Business Administration and decided to move to Toronto in May 2013. She moves to a new place to follow her desire on finding a new job in investment banking. She rents a spacious condominium with two bedrooms in it with the rents of $ 3,000 per month. In July 2014, the same condominium unit next to her condominium are decided to be sold. Young believed that she could afford the condominium for $ 600,000. However, she felt that she bought a condominium that will not meet her long-term needs. Thus, Young decided to sell it in two to ten years. Analysis of Young's decision to buy or rent a condominium from the quantitative side is the suitable way to get the best financial decisions.
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...a relator may be interested in knowing about the condominiums. Next the 95% confidence level was calculated and a interpretation of what the finding mean was provided. Then the sample size was determined based on the provided margin of error and a 95% confidence level. Finally, the estimated final selling price and days to sell for both Gulf View and No Gulf View Condominiums was show using linear regression.
"CAMDEN PROPERTY TRUST." Journal of Property Management 76.3 (2011): 54-55. Business Source Premier. EBSCO. Web. 18 Oct. 2011.
The 'Standard' of the 'Standard'. Combination of project cost forecasts with earned value management. Journal of Construction Engineering & Management, 958-966. Sitnikov, C. (2012). The 'Standard'.
Explain why in practise other methods of evaluating investment projects have proved to be more popular with decision-makers than the net present value method. (Please compare at least three (3) methods)
The Net Present Value (NPV) is a Discounted Cash Flow (DCF) technique that relies on the concept of opportunity cost to place a value on cash inflows arising from capital investment, where opportunity cost is the "calculation of what is sacrificed or foregone as a result of a particular decision".
As a requirement in MMP111 Introduction to Property, this assignment will examine and value a residential home located in Altona North. The physical condition of the house will be evaluated, and after looking at the various factors likely to influence on the va...
The poems ‘lines composed on Westminster Bridge’ and ‘London’ are created by William Wordsworth and William Blake respectively. Wordsworth’s work originated in the eighteenth century and he himself lived in the countryside, and rarely visited large cities such as London. This is reflected on his poem, making it personal to his experience in London, however William Blake on the other hand had a vast knowledge of London and was actually a London poet, which allowed him to express his views of London from a Londoner’s point of view. I therefore will be examining comparisons in both poems, as well as their contrasting views of London and the poetic devices used to express their opinions.
Washington Square In Putt's book Henry James: A Readers Guide, he speaks in a chapter about Washington Square. Within this chapter, he goes over the role that Catherine plays in the story. She ultimately chooses spinsterhood, and not to defy her father, and to be the good daughter. The theme of avoidance of marriage, spinsterhood, is something that is focused on by James in much of his work (Putt 46).
To calculate the valuation of Ryanair, the firm's future revenues and costs, as well as the firm's current accounting value must be calculated. To account for a range of possibilities, three different valuations have been calculated through 2012. These are called Annual Report, Valuation 1, and Valuation 2. Descriptions of each of these valuations will develop as the revenue and cost modeling are discussed. A description of the valuations will conclude the Analysis portion of this document.