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Course No.
Course Tittle
Finance Management
Assingment No
PGPM 12
Construction
Two
Developers perspective:
This offer gives the developer an opportunity to make profit
from the parcel of land given to him by the trust. The challenge
here is to generate capital and cash flow during the
CALCULATING PROFIT:
SUMMARIZING:
Year 1:
Total capital available
= 3.6 crore
Source of capital:
1. 3 crore long term capital,
2. 50L short term capital and [needed for the first quarter]
= 2.3 crore
= 0.0
Year 2:
Total capital available
= 1.3 crore
Source of capital:
1. 1.3 crore surplus from the 3 crore long term capital loan,
2. From booking/sales of housing units.
Total requirement for expenditure
= 6.54 crore
Year 3:
Total capital available
= 0.0
Source of capital:
1. From booking/sales of housing units.
Total requirement for expenditure
= 2.97 crore
Disclaimer:
This is just one way of looking at the problem. This example is
given to provide clarity to the problem. In no way the given
solution given here can be substituted for a formal submission.
It is advised to all students to make independent effort to solve
this problem.