Lab03-3210-F13-HW2-Support

Does this change have an impact on the overall

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: le A as your guide. ii. Does this change have an impact on the overall project NPV/IRR, the equity NPV/IRR, or the lender’s yield? Characterize the impact of this change. iii. Would you still do this deal? Why or why not? b. Debt Interest Rates increase by 100 BP across the board as the project moves from concept to construction. (That is, what was formerly 50% LTV at 6.75% is now 50% LTV at 7.75% - all the other debt interest rates are similarly impacted – see the financing inputs above.) What is the impact of this change on the feasibility of your project? Specifically: i. Summarize which cash flows are changing, use Table A as your guide. ii. Does this change have an impact on the overall project NPV/IRR, the equity NPV/IRR, or the lender’s yield? Characterize the impact of this change. iii. Would you still do this deal? Why or why not? c. All rents are 3% lower than the template figures. What is the impact of this change on the feasibility of your project (overall) as well as the “Space Mix”? Specifically: i. Summarize which cash flows are changing, use Table A as your guide. ii. Does this change have an impact on the overall project NPV/IRR, the equity NPV/IRR, or the lender’s yield? Characterize the impact of this change. iii. How d...
View Full Document

This note was uploaded on 10/22/2013 for the course HADM 3210 taught by Professor Peterliu during the Fall '13 term at Cornell.

Ask a homework question - tutors are online