Container Financial Analysis

Container Financial Analysis - The discount rate would 7%....

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Assumptions: The price of our student dorm would be $1436 per person with 3% increase rate every year. The land cost is 13.5 million and the yearly leasing cost is $945,000. The land would be leased at cap rate 7% for 7 years. The cost of a container would be $40,000, which includes manufacturing, interior, and shipping. The size of the container is 40ft * 10ft *8ft. The scrap value for the building is 30% of the initial investment. We would have 95 containers with 2 bedrooms in each container. The occupancy rate would start with 85%, 90% and 95%. It would decrease by 5% for recession and increase by 5% for booming.
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Unformatted text preview: The discount rate would 7%. Student Dorm Project Financial Analysis Summary Scenario 1 Scenario 2 Scenario 3 Avg. Room Charge $ 1,613 $ 1,613 $ 1,613 Occupancy Rate 88% 93% 98% Revenue (in million) $ 3.2 $ 3.4 $ 3.6 EBITDA (in million) $ 2.0 $ 2.2 $ 2.4 Net Profit (in million) $ 1.3 $ 1.4 $ 1.5 NPV(in million) $ 1.9 $ 2.5 $ 3.0 IRR 17% 20% 22% Payback Period 4.1 years 3.8 years 3.6 years `...
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This note was uploaded on 02/10/2011 for the course BUSINESS 630 taught by Professor Waston during the Spring '10 term at Rutgers.

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Container Financial Analysis - The discount rate would 7%....

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