Waldo Case

Case Project
Jeff Moberly
Duncan University
BOL 622: Advanced Finance

I. Introduction
The mini-case being examined is based on Waldo County, a fictional real estate developer. Although he worked hard, anticipate the same from his employees, and had a knack for finding profitable locations, he was lacking in his financial skills. Therefore, the following analysis of his communicate cash flow statements was necessary.
In this particular situation, Mr. County wanted a member of his staff (George) to go over the figures for a raw(a) $90 million outlet m on the whole designed to solicit tourists heading down east toward Maine. In order to begin, George freshman drew up a summary of the projected revenues and costs. The information he provided in Table 10.8 from the text, along with several different factors were the basis for the case study.
The information gleaned from his initial report was metrical in order to provide some basic information. Since all initial costs and future cash flows had been identified, an analysis of those poesy using appropriate techniques based on present nourish was required in order to make the decision of whether or not to invest in the project.

II.



Summary
Some of the prerequisite points of the case situation are as follows: The company would weigh down retailers an annual rent for the space they occupied, and in addition it would witness 5% of each stores gross sales. building of the mall was apparent to take three years. The construction costs could be depreciated straight-line over 15 years starting in year 3. As in the case of the companys other developments, the mall would be reinforced to the highest specifications and would not need to be rebuilt until year 17. The land was evaluate to retain its value, but could not be depreciated for tax purposes. Construction costs, revenues, operating and maintenance costs, and real estate taxes were all likely to rise in line with inflation, which was forecasted at 2% a year. The...If you want to get a full essay, order it on our website: Orderessay



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