Downeast tourist mall
Download
1 / 12

DownEast Tourist Mall - PowerPoint PPT Presentation


  • 84 Views
  • Uploaded on

DownEast Tourist Mall. Ryan Dresher Ashley Moss Southwestern College-MGMT 565 Instructor-Mohamed Elaoudiy. Agenda. Background Possible Project-DownEast Tourist Mall Project Evaluation Risk Evaluation Conclusion. Background. Waldo County Well known real estate developer

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' DownEast Tourist Mall' - siusan


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Downeast tourist mall

DownEast Tourist Mall

Ryan Dresher

Ashley Moss

Southwestern College-MGMT 565

Instructor-Mohamed Elaoudiy


Agenda
Agenda

  • Background

  • Possible Project-DownEast Tourist Mall

  • Project Evaluation

  • Risk Evaluation

  • Conclusion


Background
Background

  • Waldo County

    • Well known real estate developer

    • Known for picking good locations

    • Needs evaluation of new tourist mall project

  • DownEast Tourist Mall

    • Objective: intercept the many tourists heading downeast toward Maine.

    • $90 million investment


Downeast tourist mall1
DownEast Tourist Mall

  • Capital Outlay--$90 million

  • Construction --3 years w/15 year life

  • Income

    • Annual rent from retailers--$12m

    • 5% of each tenants gross sales--$24m

  • Cost of Capital –9%


Project evaluation
Project Evaluation

(Brealey, Myers & Allen, 2011)



Risks
Risks

  • Retail Sales Slump

  • Rental Sales Slump

  • High Construction Costs

  • Delayed Construction

  • Inflation





Conclusion
Conclusion

  • NPV and IRR suggest going forward

  • Low risk of negative NPV

    • Income would have to dip 30% in all years to cause negative NPV

  • 6.5 year payback

  • Recommendation to move forward


References
References

Brealey, R. A., Myers, S. C., & Allen, F. (2011). Principles of corporate finance. (10 ed.). New York, NY: McGraw-Hill.


ad