Angus Cartwright III Case Study v2 Essay

1. Which firms are the “identical twins” of the Collinsville investment? Using the β’s for those assets and the methodology learned in this course, determines the appropriate discount rate for the Collinsville investment.

This paper will assess my ability to maximize my personal return on investment with an allocation of $1,000,000. The overall goal of this exercise is to obtain the highest return possible within the next 12 months. I am limited to the following asset classes for allocation of all investments:

For the greater part of the last decade, we in the United States have been witness to a consistently appreciating real estate market. Sometimes it seems that almost anyone who has purchased a house, piece of property, or other real estate type investment has done very well. I personally can point to a few examples where friends of mine have made several hundred times their first home equity investment. In sales of primary homes there is a tax

For all of these reasons, I believe that rent control should be abandoned in New

The break-even analysis helps us understand the minimum operating levels of the property before the bottomline is affected. The break-even occupancy is sustainable according to the estimated rates. Alison Green has the lowest break-even point at 64.84%. Ivy Terrace, the other apartment building, is 67.07%. Stony Walk and the Fowler Building, the two office complexes, are at 76% and 85.92%, respectively. This puts the highest risk of uncertainty and their effect on the returns to the office buildings. The cash flow projects for the 10 year holding period helps us understand the IRR and NPV of the project. When looking at the IRR we have to keep in mind that it assumes the cash flows will be re-invested at the IRR. Interest rates fluctuate over time, so this is an unrealistic assumption. Thus, the NPV analysis is the best projection for these properties. Page | 6

(6) Determination of the appropriateness of this particular property for Alexander’s personal needs. Should Alexander make this investment?

In Exhibit 2 we find the first-year project setups. This is important information because we can see how much each real estate property will cost in the first year. This information is also useful in setting up the projected cash flow analysis for each of the four properties. Alison Green had the greatest before tax cash flow with $434,306.53, Ivy Terrace came in second with before tax cash flows of 336,130.99, 900 Stony Walk came in third

Mr. Alexander is a gentleman that is looking to build his investment portfolio through residential real estate. He is looking at investing in a 4-plex in a historical district located within Boston, Massachusetts. The building is located on Revere Street and has a listing price of $350,000. Mr. Alexander is evaluating the possible commitment to understand what he stands to gain from the annual cash flows while at the same time understanding the risks involved. The subject property is located within a historical district and is not yet capable of housing tenants. Property will require significant improvements prior to inhabitation. Client

After analysis of Mr. Alexander’s proposal, it is obvious why he should take advantage of a real estate investment opportunity. The experience he would gain coupled with the added income would establish a solid foundation for making more investments in the future. To this end, however, I find Alexander’s plan for the Revere Street property falls short. A major deficiency is that his projections are almost entirely predicated on estimates and assumptions that are neither conservative nor reliable. In a similar vein, Alexander’s “DIY” approach is not only exemplar of naiveté, but also suggestive of many implications that were overlooked in his proposal. And, even more discouraging, a best-case scenario analysis reveals that even without

Even when assuming these conditions most favorable to Laflin, his Net Present Value is negative, and his Levered IRR is still lower than his r, meaning the return is less than the risk associated with this investment. (See New Tenants)

Both statements were incorrect. Studmaster gave Mrs Tran 7 days to agree to the lease

Founded in 2001, Yorktown Technologies, Inc. is a company that specializes in the ornamental fish industry. The globalization of the ornamental fish industry happened over a half a century ago. Hundreds of freshwater and saltwater fish can be purchased as pets in virtually any industrialized nation in the world (Broy, 2011). Yorktown Technologies commercializes a genetically modified fish called GloFish, which appear to glow in the dark (Mueller, 2010). GloFish are zebrafish that have been genetically modified with fluorescent colors. They are the first genetically modified animals to become publicly available as pets

In this case module I was asked to watch a video lecture and to review learning activity number one. I was then asked to answer and discuss four different question; from a cultural perspective, is it unusual that Grandmother Marietta is the

When we look at 75% occupancy, the rate of return (net earnings divided by amount invested) is $298,000/$3,525,000 = 8.4%. . This return should be regarded as low; as the

1. How might one characterize or describe the architectural paint coatings industry and Jones Blair’s trade area?