FMT306: Assuming you are a facilities asset manager and you found a piece of land that would be perfect for your asset portfolio: Strategic Asset, Property and Facilities Management Assignment, SUSS, Singapore

Question 2

Assuming you are a facilities asset manager and you found a piece of land that would be perfect for your asset portfolio.

(a) Recommend the TWO (2) approaches you can use to appraise the land and give an offer to the seller.

(b) Demonstrate the process of your appraisal to justify the offer to the seller for the piece of land.

Question 3

Comparing the Net NPV and IRR figures in Question 1, answer the following questions:

(a) Appraise the figures of NPV and IRR in Question 1.

(b) Demonstrate the key reasons for facilities asset managers to calculate both NPV and IRR.

(c) Which method is more suitable to help an asset manager make a more realistic long term investment project decision? Appraise the reasons for your selection.

(d) In the analysis of both NPV and IRR, demonstrate which methodology does not have a discount rate issue.