Investment Decision, Construction Finance, Cash Flow

Hi
This is a small task of Revision
I have attached the completed files, and previously done work. Below are my comments that will help in the revision and assessment completion

1. First please go through the instructions and completed assessment files.

Referencing style: Harvard
Word Count: 1000 words
Deadline: 1st May
UK ENGLISH

More Task resources are available in this link: https://drive.google.com/drive/folders/1hFZZHZHfQSq8UnzU6nRolrLg2L8KOulf?usp=sharing (

2. Once you have read all the instructions and completed the work, then read the below comments for the revision:

Assignment 4 there are two tasks

Create a predication cash flow for the first 4 years of the project A (Show as a quarterly figure) based on the detail below Note to the calculation: · Project Income comprises of o Investment sales of £850,000 which started in the 1st quarter of the 2nd year o Residential sales started in the 3rd quarter of the 1st year at £1.6m, £2.5m, £1.8m, £1.9m, £1.8m, £1.9m, £2.5m, £1.9, £1.8m, £1.9m, £1.3m, £1.6m and £1m respectively o Short term income of £800,000 per quarter for 36 months · Development cost comprises of o Site purchase of £2.5m to be paid during 1st quarter of the 1st year o Acquisition cost is also an initial cost based on 4.25% of site purchase one off payment in the 1st year. o Contingency provision is £100,000 to be paid in the 3rd quarter of the 1st year o Infrastructure cost – is a fixed amount of £200,000 every quarter starting from 2nd year o Construction cost started during 2nd quarter of the 1st year £1.5m, £1.6, £1.5m, £1m, £1.2m £.4m, £.4m, £1.1m, £.3m, £150,000, £2.5m, £1.5m, and £200,000 respectively. o Professional fee where 4% of the total construction cost with first payment commencing during 1st quarter of 1st year to the 3rd quarter of the 4th year o Preliminaries and insurances will be a fixed cost of £50,000 for 11 quarters starting from 2nd quarter of the 1st year o Other costs of £50,000 for every quarter. The opening balance will be a sum of £15m Analyse the predicated performance of the above project; discuss what economic factors that could have either a positive or negative impact on the performance. 500 words You must use MS Excel to produce your final cashflow.

Higher National Certificate

BUIL1035 Construction Economics and Finance Assignment: 2 Project Details

Task 1a

Task 1b

John Glenn Ltd. has been looking into purchasing a number of plants and machinery that will require them investing £850,000. However, they are only considering borrowing 72% of the total amount required, it has been forecasted that the plants will have a life span of 10 years. Plant A The annual cash flow for the plants is as follows: 1st year £180,000, 2nd year £180,000, 3rd year £160,000, 4th year £148,000, 5th year 125,000, 6th year £142,000, 7th £165,000, 8th year £140,000, 9th £90,000, 10th year £105,000. Every other year £10,000 is to be paid out on routine maintenance, year 5 renewal a licence will cost £20,000, during the ninth year the assets are valued @ £90,000 however, not disposed till year 10 when it has depreciated by another 8%. Plant B The annual cash flow for the plants is as follows: 1st year £150,000, 2nd year £210,000, 3rd year £190,000, 4th year £248,000, 5th year £225,000, 6th year £242,000, 7th £65,000, 8th year £40,000, 9th £30,000, 10th year £35,000. Every other year £10,000 is to be paid out on routine maintenance, year 5 renewal a licence will cost £20,000, during the ninth year the assets are valued @ £90,000 however, not disposed till year 10 when it has depreciated by another 8%. The borrowing rate per annum was 10%. Calculate the NPV & IRR. With reference to a number of economic factors that could influence an investment decision, produce a 500-word rationale to j

this needs to be done on MS EXCEL TO PRODUCE FINAL CASH FLOW