Hvac Refinancing Case

The company is totally committed to its goal of creating projects that will attract clients and safeguard the interest of its partners by ensuring high ROI. The list of recent grand projects undertaken by the company, according to Boraie.com include The Aspire residential apartment, Milltown Ford Avenue redevelopment, One Rector Street and the Beach of South Inlet.

To make the most informed decision the IRRs and payback periods of the projects should be compared in conjunction with the NPVs of the two projects. The NPV analysis of the two projects under consideration indicates that the MMDC Project is the better of the two projects.

The first project proposal is Match My Doll Clothing line expansion consisted of expanding matching doll and child’s clothing and accessories. The second project proposal is Design Your Own Doll by creating customizable “one of a kind” doll features through the company’s website. The project selection criteria would base on quantitative and qualitative analysis. The quantitative analysis would base on the evaluation of discounting cash flow forecasts to determining the Net Present Value (NPV), Internal Rate of Return (IRR), and the Payback period of each proposed project. The qualitative analysis would include the potential project value of the company’s overall strategy, innovation, key project risks, and the project interdependencies to the whole company.

a) Discounted cash flows from the projects by the suitable division of a hurdle rate to get the net present value which financially makes sense since risks among different divisions do vary.

This project will require a large amount of money for both capital and operations. From a capital standpoint our end state is to build a facility that provides: 1) supportive housing for up to 10 homeless Veterans in need of immediate and intensive services; and 2) affordable housing for up

Since Elijah Heart Clinic patient inflow has increased, there are plans for a $75 million dollar expansion and improvement project to manage the patient inflow. The plan is to open a new facility with 100 private rooms and include the latest technology. Not only will there be new construction but the clinic will also renovate the existing facilities. I based my decisions on the focus of the clinic. The focus is to make sure that the changes will continue to provide patients quality care. Also when making my decision, I have to keep in mind that the strategy chosen will result in the success or failure of the clinic. To choose the best option, I had to analyze the cost of funding, the net present value, collateral requirements, prepayment limitations, and deadline for using the fund.

2. [LO 1] Compare and contrast the aggregate and entity approaches for a sale of a partnership interest.

As shown in the ratios chart, working capital has increased by $13M. Maturities of short-term investments and cash flow from operations are projected to be sufficient to sustain the company’s overall financing needs, including capital expenditures. The following corporate strategic plan identifies a project that needs financial backing.

In September 2003, Mason Sexton, a young, inexperienced developer, was making plans to replace a rooming house he had inherited next to the University of Virginia campus in Charlottesville with a new 14-unit, 5-story apartment house. In his attempts to assemble the information, approvals, and resources necessary to go ahead, he runs into many problems associated with the development process. While Sexton is able to carry out most of the conceptual, investigative and planning stages of this development, he runs into many problems because of his inexperience and his initial plan changes over time. He runs into issues obtain financing, has to spend money to obtain a certificate of occupancy, underestimates the

If the project required additional investment in land and building, how would this affect your decision? Explain

The total amount of the investment is worth $7 million and is invested by the below parties:

The question that transcends the project is whether equity investors be sufficiently rewarded to justify there financing interests. The answer to this question is dependent

4. What kind of debt (agency debt, bank debt, or Rule 144a bonds) should the sponsors of the project use to fund the deal? What are the advantages and disadvantages of each kind of debt? In your view will project bonds receive an investment grade rating? What is the“weakest link” of the project? How can they improve the likelihood of getting an investment grade?

This case study analyzed five different projects Target Corporation had to decide on capital spent for which project created the most value and the most growth for the company and its shareholders. By analyzing the financial statements and exhibits of each project, I was able to determine the positives and negatives of each of these alternatives. The alternatives were Gopher Place, Whalen Court, The Barn, Goldie’s Square, or Stadium Remodel.

2. Compute the NPV of both projects. Which would you recommend? What if they are not mutually exclusive?