Directions

Apply your tools to the Sofia Lofts case, but under a new set of assumptions on page 11 of the case. Firstre-read the Sofia Lofts case, thenclick here to download the new page 11. Specifically, you are to write up a brief analysisof the case with this new page 11, primarily using your Toolkit in the analysis. Assume for Assignment purposes that your boss has asked you to provide an analysis of the proposed Sofia Lofts development. Your boss is considering investing in the deal, and wants your view of the project. Make a recommendation on whether you believe your boss should invest, using the tools below.

In addition to turning in a written analysis, you will also turn in an Excel file demonstrating your answers, formulas, and all work.You will upload and submit your Excel file on the next page.

Tools/items which you are required to use include:

1. Market Value Today
2. Gain/Loss Since Development (excl. cash flow)
3. Return on Assets
4. Return on Equity
5. Loan Constant
6. Development Cost Per Unit
7. Most Profitable Unit Style
8. Construction Loan Interest