Financial Analysis of City Highrise Development Project

Running head: PROJECT ANALYSIS
PROJECT ANALYSIS
Name of the Student:
Name of the University:
Author’s Note:

1CITY HIGHRISE DEVELOPMENT PROJECT
City Highrise Development Project

2CITY HIGHRISE DEVELOPMENT PROJECT
Serial Particulars Yes No
1 Initial Development Cost Outflow Evaluation Yes -
2 City Highrise Project Outlay Yes -
3 Forecasting Cash Flow Outlay from the Project Yes -
4 Total Profit Evaluation with financial tools Yes -
5 Total Outflow for the project Yes -
6 Financing Cost of the Project Yes -
7 Rise in Expenses Yes -
8 Return generated from the Project Yes -
9 Evaluation and Forecasting Earnings of the Project Yes -
10 Exit Route/Sale of City Highrise Yes -
11 Cash Inflow for the Developers Yes -
12 Profit generated for the John Willey Pty Ltd Yes -
13 Yield generated by the company under different scenario Yes -
14 Leveraging Effect Yes -
15 Types of Risks Associated with the Project Yes -
16 Sensitivity Analysis Yes -
Checklist for the Assignment

3CITY HIGHRISE DEVELOPMENT PROJECT
Project Evaluation Letter
184/A Wall Street,
Brisbane, VIII 3000
Telephone [phone]
8620
www.financialadvisoryservice.com.
16th October 2018
Mr Mellon Mark
The Managing Director
City Highrise Complex Project Development Option.
Floor 8, Park Avenue Street
Brisbane SA 78520.
Dear Mr Mellon,
Sir, we are delighted to inform you that as per the guidelines provided by you for the
evaluation of the City Highrise Development project the same was evaluated and the findings
of the project has been described brief in the report attached. We would like to inform you
that the financial evaluation for the project City Highrise Development Complex was done by
incorporating several developments cost and revenue forecast for the same was evaluated
under different set of scenarios. The key assumptions taken in the project are highlighted
according to the business and macro-environmental analysis.

4CITY HIGHRISE DEVELOPMENT PROJECT
The project was grouped according to the different phase of the development and the
same was analysed for the project. The key risk involved in the project like the market risk,
business risk and macro-economic risks like demand and supply of the real estate and
inflation were accounted for the forecast. Sensitivity analysis performed gave us the brief
idea of the different possible scenario analysis from the project. The project analysis under
different scenario though has some aspects of risks involved but the same should be accepted
by the project.
Please note in case of any query and information needed for the analysis portion of the report
you contact us at our official email address.
Yours Sincerely
Financial Advisor
Financial Advisory Services
Enclosure: Investor Advisory Service
Cc: Harvard Paul

5CITY HIGHRISE DEVELOPMENT PROJECT
Executive Summary
The aim of the project is to conduct a financial analysis on the City Highrise Development
project. A financial analysis was done on the project to check the financial viability of the
project for the purpose of the investment. The various aspect of the project like the
development cost and the revenue analysis was done on a forecasting basis in order to get the
financial viability of the project. The key analysis of the project when the different
components were analysed and a sensitivity analysis was performed on the basis of the
different component of the project. The project scenario was evaluated under different
scenario under optimistic and pessimistic scenario to get the outcome of the project as the
business and macro-environment factors changes. The project from the developer’s point of
view does not deliver better returns an negative net present value for the developer of the
project was evacuated du to changing business and macro-economic conditions of the project.
However it is crucial to note that the project from the John Wiley Pty Ltd was a successful
one where the terminal value was forecasted an exit route of the project could potentially
turnout differences in the project.