Project Modelling and Decision Methods Essay Example | Topics and Well Written Essays - 1500 words

Project Modelling and Decision Methods - Essay ExampleThe approach is primarily to evaluate property realistic everyy of a specific location. In this exercise, we capture the trends in the past, make relevant assumptions of the future, address some challenges that can be foreseen and arrive at a conclusion. The simulation and the spread sheet representative rationalize the decision and support the analysis to strengthen the reasoning behind potential investments and an assessment of the associated risks, if any.This paper applies structural methodology to estimating and forecasting the Central capital of the United Kingdom office market. We assemble a time series covering for over a decade and estimate equations for net space absorption, movements in rents, and new expression orders and other facilities along with new flourishing businesses. We also estimate a typical supply and demand relationship that yields a dynamically stable system.A spreadsheet model is an effective instrume nt for quantitative estimates based on a specific framework. The excel sheet embedded in this article is an illustrative interpretation for capturing similar data for any property identified with required criteria in the prime location of Central London. While it a conscious decision non to engage in advanced computerization as it is not a pre-requisite, but ideally one of the outcomes of good asset management. The spreadsheet model suggested here is a methodological tool for understanding and improving the assessors ability to consider all factors in Real Estate Project Modeling and deriving decisions accordingly which provide also facilitate the process of financial planning and expectations. The logic of the framework and the attached spreadsheet model is fairly simple and follows the approach tested and used by Project owners. At the very outset, we should make quantified entry assumptions about parameters that define the total apostrophize of office property in Central Loca tion. The model calculates the estimated cost and the anticipated returns.The key assumptions cover the following Various costs per unit (such as land acquisition price per unanimous feet, construction cost per square feet, costs of various furniture pieces, etc.) Space needed for OfficeEquipment and furniture required Costs of each component (Furniture, Total capital cost (land, building, equipment/furniture) For all the apparent simplicity of this framework, it still establishes a clear hierarchy of parameters thus, the area of the location (i) Prevailing rate per square feet area and (ii) space utilization 3. pass judgment InvestmentThe whole exercise is primarily to assess investment and every smart investment provides long-term capital appreciation and immediate, consistent rental yields save while modeling the project we need to have all the facts at our disposal.The prevailing rates of property based on the location chosen ecesis costs will always be significant, with stam p duty, legal and surveying fees and related costs