**Tasks**

A developer has engaged your services to appraise two proposed mixed housing and office construction projects which she is considering for her portfolio.

In order to begin your appraisal process, would you use an analytical or nonanalytical decision-making technique, and why?

Which type of decision-making technique would you consider in appraising the proposed construction projects for the developer and what steps would you take?

Following your appraisal, the developer/client has decided to proceed with your recommendations. The developer has proceeded through the tender stage and has now engaged a contractor to construct her mixed housing and office project. The successful contractor has decided to invest in some new mini excavators for this project as it requires a large volume of excavation work in a tight urban environment. You have now been engaged by the contractor to compare the Net Present Value of the following two possible excavators. Assuming a discount rate of 12%, initial and annual operating and maintenance costs are given, together with annual incomes and salvage values. Following your calculations please state which excavator/option you recommend and why.

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The Contractor has also decided that he will subsequently invest in a new

curb-laying machine for this project. He has two options, A and B

Option A has an initial cost of €60,000 and an annual maintenance cost of €8000, and a residual value of after 12 years of €8000.

Option B has an initial cost of €70000 and an annual maintenance cost of €6,000 and a residual value of after 12 years of €5500.

Assuming an interest rate of 12% compounded annually, compare the equivalent annual worth of two mechanical plant options. Following your calculations please state which excavator/option you recommend and why.

Following the appraisal and construction of the mixed housing and office

development, it is purchased by an investor for €850,000 and is expected to

increase in value to €1.4 million in five years. During this period it can be rented

to a tenant for €35,000 per year. Annual costs are €15,000. What rate of return will the investor obtain on his investment within this time period?

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The post QUSU07022: A developer has engaged your services to appraise two proposed mixed housing and office construction projects which she is considering: Project Feasibility and Appraisal Assignment, ATU, Ireland appeared first on QQI Assignments.