# This about a financial case. I have the answers however I

This about a financial case. I have the answers, however, I need them paraphrased and to make it different from the original. (Just write the same answers in a different way with different use of word). Please make sure to make the style also looks different. Here are the questions:1. Qualitatively discuss the benefits and costs of choosing Madison as the target market for the proposed luxury student-housing development.2. Explain the feasibility analysis provided in the case and critique it as a basis for decision-making. Your critique should include both a discussion of what is wrong with the technique, as well as what may be wrong with the assumptions within the specific application of the technique.3. Suppose instead you were considering developing to a yield on cost. In other words, you would be willing to make an investment into the development project as long as the annual cash flow of the property was at least 5.2% of the total development cost, where cash flow is measured at project completion and the time of development cost is ignored (except for when calculating construction loan interest). Development costs include both hard and soft costs, as well as interest on any construction loan. Assume that Lenard can finance hard development costs with a construction loan that charges 6% interest to repaid upon project completion. The first draw on the construction loan is made to pay for the demolition, with twelve subsequent draws evenly spread to cover the remaining hard costs. You may assume that the property’s net operating income (NOI) is growing at 3% per year and that property CapEx (capital expenditures) is 20% of NOI. Discuss the merits and deficiencies of using this approach to determine the appropriateness of a real estate development project. Justify any additional assumptions you must make to complete your analysis.4. Develop a pro forma for the completed apartment complex and estimate its value at completion. Justify any additional assumptions you must make to complete your analysis.5. Estimate the net present value (NPV) of the development project as a function of the cost of land. Assume that you will always pay the soft costs and that you will definitely make the draws on the construction load that you calculated in Question 3. Further assume that the construction loan itself was zero NPV to the lender and that the risk-free rate is 3%. How much can pay for the land so that the development is zero NPV? What internal rate of return (IRR) will a developer achieve with a zero NPV investment into this development project? Justify any additional assumptions you must make to complete your analysis.6. Now consider the problem as a real option. Assume that a plot of land in Madison gives you the right, but not the obligation, to build this particular luxury fifteen-unit apartment building at any time during the next ten years. The strike price is the present value of the construction cost, which you calculated in Question 5. You should further assume that these costs are growing at 3% per year. The underlying asset value is currently the price of a property valued in Question 4 if it existed today. Using the binomial option pricing model, estimate the maximum price you should be willing to pay for the necessary land. At this price, is the NPV you calculated in Question 5 positive or negative? Qualitatively explain the relationship between the price of land that delivers a zero NPV in Question 5 and the price of land you calculate in Question 6. Assume a risk-free rate of 3%.7. In light of your previous calculations (and any additional qualitative reasoning), describe whether or not you believe that Slater and Lenard will be able to earn an appropriate rate of return (or more) by pursuing the project.

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