I need this task done ASAP. If you handle by excel i think it will take few hour.

INVESTMENT/DEVELOPMENT PROBLEM You are offered the opportunity to develop a 400,000 sf warehouse facility for General Foods in suburban Philadelphia. Attracted by your expertise as a local warehouse developer, General Foods has offered to sign a triple net lease for seven years at a rent for $2 million per year. They also insist that at the end of the seven-year lease term they have the option to purchase the property at $26 million. Their final major condition is that the project be completed and ready for occupancy in 11months. If it is not complete by that time, the deal is void. You estimate that the property will cost $20 million to complete (including all costs) and that you should be able to complete it in ten months if you commence construction immediately. You believe that you can obtain a construction cost guarantee that guarantees costs will not exceed $20.5 million. You believe that you will be able to obtain a $15 million, 25-year amortization loan (with a seven-year balloon), at a fixed interest rate of 4%, and a 50 basis point fee (loan points).You believe that you can close this loan within three weeks from now. You believe that your company can access up to approximately $8 million in equity, assuming that you can successfully tap into appreciated equity positions in three existing properties without triggering capital gains taxes on these positions. Your company will receive a development fee of roughly 3% of project costs (this cost is included in your $20 million cost estimate). Finally, vacancy rates in the market are approximately 4%, gross rents in the market run $11-13 per square foot, with operating expenses and taxes running $2-$4 per square foot. Negotiations are over and it is time to make a decision. Please provide the following: Pro-forma/Investment Analysis Also include: Explain the risk and opportunities for the potential investment (is it a good or bad deal and state the pros and cons) Partitioned IRR Growth model calculations Property Value Reversion Year 7 Going-in Cap Rate Investment/Development Problem Explain the risk and opportunities for the potential investment (is it a good or bad deal and state the pros and cons) Going by the IRR and cap rate, the investment seems to be a good deal for the company. An IRR /cap rate of over 14% as compared to the 4.5% rate of interest for the loan indicates extraordinary return on the capital that needs to be invested. These are the pros for the investment. But on the other side, net investment for the first 11 months is over $5.8 million. This when compared to the equity of $8 million signifies huge risk in the investment strategy. In case the company is not able to complete the project in time, the risk is completely on the company. Cost overrun upto 0.5 million is on the company too. Explain the risk and opportunities for the potential investment (is it a good or bad deal and state the pros and cons) Going by the IRR and cap rate, the investment seems to be a good deal for the company. An IRR /cap rate of over 14% as compared to the 4.5% rate of interest for the loan indicates extraordinary return on the capital that needs to be invested. These are the pros for the investment. But on the other side, net investment for the first 11 months is over $5.8 million. This when compared to the equity of $8 million signifies huge risk in the investment strategy. In case the company is not able to complete the project in time, the risk is completely on the company. Cost overrun upto 0.5 million is on the company too