- Unit CMI321 Managing Own Personal and Professional Development Assessment | BCU
- CIPD Unit 5CO01 Organisational Performance and Culture in Practice Learner Assessment Brief 2025/26
- ATHE Level 3 Unit 2 How Businesses and Organisations Work Assignment | LCPS
- Unit 531 Principles of Professional Coaching Assessment Brief | SBTL
- PSY4011 Developmental Psychology Assessment Brief – Identity Development in Childhood
- MBA7066 Innovation and Entreprenuership Assignment Brief 2024-2025 | University of Greater Manchester
- Unit 17 Caring for Individuals with Dementia BTEC Level 3 Assignment Brief Case Study
- BTEC Level 3 Unit 15 Care for Individuals with Dementia Assessment
- Unit 3: Professional Practice Authorised Assignment Brief 2025–2026, ESOFT Metro Campus
- Unit 7 Leadership & Management People Assignment – Level 3 Diploma in Business and Management
- HNC Civil Engineering Assignment 2 The Construction Environment
- HNC Civil Engineering Assignment 1 Geotechnics & Soil Mechanics Academic Year 24/25
- UNIT CMI 519 Managing Quality and Continuous Improvement Assessment Brief
- Level 5 in Leadership and Management in Adult Care – Governance and Regulatory Process in Adult Care and Decision Making in Adult Care
- BTM6GSM Global Strategic Management Level 6 Assignment 1 Case Study
- Level 5 in Leadership and Management in Adult Care – Supervising Others and Facilitate Coaching and Mentoring of Practitioners in Care Settings
- Unit 2 Marketing Processes and Planning Assignment Brief 2025-2026
- Unit 805 Strategic Communication Assignment Brief- Media Impact on International Organisations
- UNIT CMI 513 Managing Projects to Achieve Results Assessment Brief
- AFM5CGL Level 5 Corporate Governance and leadership Assignment Case Study
FIN6003 Real Estate Ltd is considering investing in property development, which requires an initial investment of £130,000: Financial Management Assignment, AU, UK
| University | Arden University (AU) |
| Subject | Financial Management Assignment |
Question 1
Real Estate Ltd is considering investing in property development, which requires an initial investment of £130,000. The annual cash inflows during years 1-3 are expected to be £40,000 for year 1; £45,000 for year 2 and £52,000 for year 3. The company’s money cost of capital is
6% and inflation is expected to be 3% during the life of the project.
Required:
a) Calculate the ARR of the project, taking inflation into account.
b) Calculate the (Undiscounted) Payback Period of the project, taking inflation into account.
c) Calculate the NPV of the project using the money cost of capital as the discount rate, and state clearly whether the project should be undertaken.
d) Calculate the NPV of the project using the real rate of return as the discount rate (round up to 2 decimal places), and state clearly whether the project should be undertaken.
e) Discuss the likely impact of your results in parts c) and d) above on Real Estate Ltd. (4 marks)
Do You Need Assignment of This Question
Struggling with your Financial Management Assignment at Arden University (AU) in the UK? We’ve got you covered! Our specialized team offers top-notch management assignment help UK, ensuring you excel in your course. Whether it’s navigating complex financial scenarios or delving into the specifics of investments like FIN6003 Real Estate Ltd’s venture requiring a £130,000 initial investment, our experts provide comprehensive support.
With our Homework Writing Help UK, students can confidently pay for expert guidance tailored to their academic needs. Ace your assignments with our dedicated assistance!
Answer
Do You Need Assignment of This Question
