Purchase Evaluation (100 points) Management is considering acquiring new office

Purchase Evaluation (100 points)

Management is considering acquiring new office space by purchasing Zone A property which would cost $5,000,000 to buy today.

It has been estimated they could sell the Zone A property in 8 years for $8,500,000.

They will have to take a loan and pay an interest rate of 7.5% on that loan.

What is the Present Value of the sale proceeds from the Zone A property?

Should the fund purchase the Zone A property and if so, why?

The health fund realize they could rent out part of the one A property that is surplus to requirements and receive rent of $350,000 per year.

What is the Present Value of the sale proceeds from the Zone A property with rent?

Should the fund purchase the Zone A property with rent and if so why?

They receive a new offer of another building, the Zone B property but with slightly different conditions.

It costs $500,000 less to purchase

The rent to be received would be $150,000 less per year, however, the interest charged on the loan would be 1% less per year.

The Zone B property could be sold in 6.5 years, but they would receive $1,000,000 less than the Zone A property

What is the Present Value of the sale proceeds from the Zone B property? 

Which is more attractive, the Zone A property (with rent) or the Zone B property?

The health fund has surplus funds available of $3,000,000 and can invest the funds earning 8% per annum

How long would it take for them to have enough money to purchase outright

The Zone A Property

The Zone B Property

The health fund finds it only has $2,75,000 to invest but can utilize an alternative investment and earn 9.5% per annum

How long would it take for them to have money to purchase outright

The Zone A Property

The Zone B Property

You must show all your calculations for credit. Your calculations for this assignment must be submitted as a separate Excel file. 

Prepare a PowerPoint presentation outlining all these scenarios and be sure to highlight the importance of the time value of money as one of the considerations.  

Make a recommendation as to which scenario you feel is the best option and outline your reasoning for that determination. Also, explain if you consider there may be other factors that should be considered.

The PowerPoint presentation must meet the following structural requirements. In addition to the slide presentation, submit the Excel spreadsheet with your calculations. 

Your presentation should meet the following structural requirements:

Organized, using professional themes and transitions.

It should consist of nine slides, not including the title and reference slides.

Each slide must provide detailed speaker’s notes, with a minimum of 100 words per slide. Notes must draw from and cite relevant reference materials. 

Provide support for your statements with in-text citations from a minimum of six scholarly articles. Two of these sources may be from the class readings, textbook, or lectures, but the other four must be external. The Saudi Digital Library is a good place to find these references.

Follow APA 7th edition and Saudi Electronic University writing standards.

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

patient file

Your final project for this course will be a patient record analysis. You will apply the knowledge of anatomy, physiology, and pharmacology that you have developed during this course in a thorough review of existing patient information in the Final Project Patient File. Specifically, you will review a patient’s history

610 6-1 Discussion: Improve, Part Two—Mitigating Unwanted Consequences

 The Essential Workplace Conflict Handbook. Including the IMPROVE Supplementary Document. Next, in your initial post, address the following: • In what ways do you perceive the Improve phase as being informed by the other phases of DMAIC that you have worked with in the course thus far? • How can

Code of conduct

 For this assignment, Write a paper about employee codes of conduct using information from your textbook and at least two other scholarly sources. First, research employee codes of ethics, especially for the medical field. Next, find some examples of employee codes of ethics from medical facilities and choose the one

Human Growth and Development

Scenario: Simon Whitaker is 42 years old and has suffered from mental illness since his late teens. He lives in a flat in a large housing estate. He lost his job as a warehouse cleaner after he was admitted to hospital the last time he became ill, two years ago.

Exporting Security

Write a 2 page argumentative essay on the links provided below. Link 1: https://www.airuniversity.af.edu/SSQ/Book-Reviews/Article/1292320/exporting-security-international-engagement-security-cooperation-and-the-changi/ Link 2:https://digital-commons.usnwc.edu/cgi/viewcontent.cgi?article=1049&context=nwc-review Link 3: https://digital-commons.usnwc.edu/cgi/viewcontent.cgi?article=1049&context=nwc-review #Exporting #Security

Organizational culture and values

 Details: Prepare a 10-minute presentation (10-15 slides, not including title or reference slide) on organizational culture and values. Describe how alignment between the values of an organization and the values of the nurse impact nurse engagement and patient outcomes. Discuss how an individual can use effective communication techniques to overcome

Document Analysis

Document Analysis (5% – c. 500 words) Primary sources are writings that were produced by individuals or groups at the time of the historical events or issues that they deal with. A number of such documents have been placed on Blackboard, organized by course unit. This assignment requires you to

M3D1: Big Data

The discussion will examine the social interaction of participants regarding an issue or situation and its impact on research data. This discussion addresses the following module outcomes: •MO1: Become familiar with the process of conducting marketing research methods and research tools •MO2: Review the process marketers use for identifying and

Case Study 1 and 2 Pneumonia and Addison diseases

Review the case study and answer all questions with a scholarly response using APA and include 2 scholarly references. Answer both case studies on the same document and upload 1 document to Moodle. Case Studies will be uploaded to Moodle and put through TURN-It-In (anti-Plagiarism program) Turn it in Score

Should schools ban unhealthy snack machines?

 Your outline should include: An explanation of the controversial issue, why is it controversial? Identify which position or side you will take in your paper, and explain why. If you don’t agree with the position you are taking discuss how this could affect your argument on the topic. If you

The Outcome of Inequality of Wealth and Income

Research Topic: Submit an idea for a research study based on a business/economic problem. • Write the title of the study. • Explain your overarching aim for the study. • What is the problem? • What is the significance of it? • Draft at least two research questions. Due 1/27

“practice of professional engineering”

1. “practice of professional engineering” means any act of planning, designing, composing, evaluating, advising, reporting, directing or supervising that requires the application of engineering principles and concerns the safeguarding of life, health, property, economic interests, the public welfare or the environment, or the managing of any such act; (“exercice de

Curriculum Development and Evaluation

 Learning Materials: Keating, S. B. (2011). Curriculum development and evaluation in nursing (2nd ed.). New York: Springer. (Chapter 13) Books are on website Vital Source user name is sred9196@yahoo.com, the password is Bungalow9@ • Exercise #1: Address an educational need among nursing staff at a health care agency. In the

Epidemiology and Surveillance

Research the public health agency in Chicago, IL and develop a presentation on its structure, response capabilities, surveillance tools, and role in emergency management. In your response, include a description of the community served by the department (Chicago), its emergency response structure, surveillance systems that are used at hospitals, biohazard

General Psychology Application

 General Psychology Application Essay Over the course of the class, we have discussed a number of different psychological concepts and theories. For your paper you will be asked to connect a real life experience or observation with a concept or theory from lecture and/or your textbook. Your assignment should include

Issues and Trends in Curriculum Development

 Learning Materials: • Iwasiw, C., Goldenberg, D., & Andrusyszyn, M. (2009). Curriculum development in nursing education (2nd ed.). Boston: Jones & Bartlett. (Chapters 13 and 14) • Keating, S. B. (2011). Curriculum development and evaluation in nursing (2nd ed.). New York: Springer. (Chapters 16 and 17) PowerPoint • Chapter 13

Foundation of Nursing Module 2.1 ( Discussion)

Module 2.1 – Discussion Nursing Theories and Theorists Instructions: After reading the assigned chapters, please post two discussion questions based on the readings along with your answers to the following questions: Did any of the theories or theorist influence your own personal theory of nursing; and consequently, your own view