You are given instruction by the client to determine a freehold golf and country resort located in prime suburb of Petaling Jaya. The clubhouse is equipped with facilities such as function rooms, grand ballroom, shopping outlets and sports amenities namely a resort-style larger-than-Olympic-sized swimming pool, 2 play pools, 4 indoor badminton courts & a VIP badminton hall, 12-Lane computerized bowling alley (Brunswick Vector Scoring System), 2 indoor & 4 outdoor tennis courts, 3 squash courts, a futsal outdoor court, aerobics studio, gymnasium, Japanese bath, jacuzzi, sauna, steam bath and many more.

The three (3) years statement accounts are as follows:

1. Gross of profit is RM 60,000,000 per annum
2. Operating Expenses is RM 20,600,000 per annum
3. Operators share is at 40%
4. Interest on capital is 9% of RM 4,000,000 per annum
5. Outgoing is 25% of gross rental per annum
6. Cost of sales is 10% of gross profit

An analysis of the rate of return for leisure properties is 10% per annum. Using suitable method of valuation and with appropriate assumptions.

1. Value the golf course for internal management purpose.