Project Management Tools On The Jaguar Project - 1508 Words

Impact of the project management tools on the Jaguar project Part 1 :Description of the project management tools on the Jaguar project 1. Work Breakdown Structure (WBS) Description: WBS could divide the project into individual tasks and it could satisfy the relationship among these tasks, WBS has two goals: 1.Ensure the whole tasks can success to accomplish the project. 2.Ensure no including the works, which are unnecessary for the project. Advantagesï ¼Å¡WBS can define project plan specifically, simplify the process.it is helpful for initial planning. Disadvantages: Once it has been finished, it is hard to change. In Jaguar project, the plan was dynamic, and software department was far behind from hardware department, in order to catch up the schedule, the tasks focus on the software development and use an increasing number of engineers, thus at the beginning, the WBS could be less effective sometimes. 2. Critical Path Analysis Description: it is usually used combing the 3-point Estimation and WBS to find the difficult task during the project. Critical Path Analysis (CPA) could identify why the whole project was delayed and predict the possible delayed task. Advantages: CPA can modify the core task dynamic, and locate the primary or essential tasks that need to be finished. With a project-scheduling program called Primavera, the project would be processed strictly in ideal situation. Disadvantages: For example, the data of the Primavera is man-made. If the departmentShow MoreRelatedTeradyne Corporation: the Jaguar Project Essay1140 Words   |  5 PagesTeradyne Corporation: The Jaguar Project Project Management Case Analysis PRESENTED TO Dr. Rupesh Kumar Pati Submitted BY Sudha T (EEPOM-05-029) Suman KR (EEPOM-05-032) Mithun Mukundan (EEPOM-05-010) Manickavasagam Ramasamy(EEPOM-05-008) Yeshaswini Rajendra (EPGP-03-193) About Teradyne Corporation †¢ Teradyne was founded by Alex d’Arbeloff and Nick DeWolf, who were classmates at the Massachusetts Institute of Technology (MIT) in the late 1940s. †¢ Teradyne was the worlds largest supplierRead MoreCategory Teradyne Traditional Project Execution Strategy1545 Words   |  7 Pagestraditional project execution strategy Planning 1. Go all-in in the front-end sizing (less details on the specification of the product) and made corrections in the detail design stage which caused quality problems in final product Engineer s Autonomy More autonomy since only after phase II (detail design) where key specifications are defined thus the engineers can easily change the product specifications and design Process Flow 1. Use of TQM, phase gate model and project management tools ( WBS,Read MoreThe Development Of Teradyne Corporation1746 Words   |  7 Pages THE JAGUAR PROJECT O’Brien was appointed as a project leader of this project called Jaguar the organisation decided to start the Jaguar project in Boston and Agoura hills starting this project means merging the two teams and both the teams are working on a flexible tester project but taking both the teams together is an issue for the organisation. 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The project was impeded or reached various stumbling blocks at certain times because people in positions of power or people who occupied key positions necessary to progress the project dragged their feet. This was largely as a result of controversy: conflicting views regarding the new technology. 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The organization concentrated all the more on utilizing breakthroughs and survey focuses though the Jaguar venture included recently presented undertaking administration rehearses, which made the worker invest more energy in the starting phases of task creations, including different dangers and client necessities without delay. The new methods includedRead MoreRoles Of The Event Management Industry1673 Words   |  7 PagesI. Introduction Events management is the creation of an event based on motives and objectives. The process, event planning requires various aspects such as logistic, schedule, budgeting†¦ .which all must be addressed by the event manager from the creation of an event to its implementation. To understand the process of planning in this industry, I have decided to look at two crucial roles the event manager must co-ordinate. First the marketing manager role, this person is in charge of developingRead MoreTeradyne Jaguar Project 2222 Words   |  9 Pagesï » ¿ Table of Contents Executive Summary 2 Background 3 Teradyne 3 The Semiconductor Industry 3 Teradyne Culture 4 Jaguar Project 4 Situational Analysis 5 Project Retrospective 6 Lack of Experience 6 Poor quality 6 Late action 6 Escalation of Commitment 6 Project Management tools usage 6 What should have been done? 6 Way to move forward 7 Executive Summary Background Teradyne Teradyne is a 45 year old corporation specialized in testing equipment for transistors and other electrical components ofRead MoreCase Study : Jaguar Land Rover1843 Words   |  8 PagesJaguar Land Rover (â€Å"JLR†) is a multinational manufacturer of automobiles with complex history and had struggled in producing quality products in the past (some would argue the struggle continues). 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The Case of Amanuel and His Political Asylum Claim in The United Kingdom - Free Essay Example

Sample details Pages: 7 Words: 2193 Downloads: 1 Date added: 2017/06/26 Category Law Essay Type Case study Level High school Did you like this example? The Case of Amanuel and His Political Asylum Claim in The United Kingdom I. Introduction This paper will establish that Amanuel has an appropriate case for refugee status in the United Kingdom on the basis of a legitimate claim for political asylum. The analysis that shall provide the underpinning for this legal conclusion is developed upon the following framework à ¢Ã¢â€š ¬Ã¢â‚¬Å" a summary of the salient facts extracted from the scenario as presented; a review of the applicable international, European Community and United Kingdom conventions, statutes, regulations and case law that govern such claims; a critique of the Home Office position that is provided as the UK government opposition to Amanuels claim; the consideration of any further circumstances not specifically noted in the scenario that are submitted as operative in similar applications. Don’t waste time! Our writers will create an original "The Case of Amanuel and His Political Asylum Claim in The United Kingdom" essay for you Create order It is also submitted that were an appropriately constituted UK immigration tribunal to deny Amanuels claim for refugee status based on his asylum claim, Amanuel would properly qualify for the alternative relief of a temporary stay based upon humanitarian reasons in accordance with UK law. It is noted that while there is a graphic quality to the facts, care as been taken to approach the issues as clinically and as dispassionately as possible. There is merit in the Home Office representation that on an international scale, the present case is not nearly the most serious of matters; asylum applications generally fit between a range of pure political disagreements with a particular regime, to the wholesale displacement of peoples, acts of genocide and systematic abuses directed at identified groups within a particular country. Notwithstanding the relative lesser degree of physical harm experienced by Amanuel and his hear family, it is contended that the cumulative effect of th e events presented provide an appropriate basis for asylum in the UK. II. The relevant facts The following facts are extracted from the scenario and presented as those essential to the legal issues framed by the statutes and the accompanying jurisprudence. Where an element of the scenario is not highlighted, such as Amanuels status as a law student, it is presumed to be irrelevant to the asylum analysis. (1) Ethiopia has a lengthy history of political unrest, prolonged sectarian violence and general national disharmony. It is a nation of extreme poverty where ruling parties are dictatorships that have generally have maintained control either as direct instruments of the military or otherwise backed by military rule. Amanuels claim must be assessed in the context of this history; it is not an isolated example. The ongoing conflicts in neighbouring Eritrea have produced an additional humanitarian burden, as thousands of Eritreans fleeing their nations civil war have fled to Ethiopia as refugees. (2) Political asylum as a component of refugee claims has become an i ncreasingly common aspect of this process throughout the world. The UK and European case law cited in this paper are only a representative sampling of the larger body of jurisprudence that considers this complex issue. Further, Ethiopian refugee claims made to the UK have been a subject of specific Parliamentary concern; over 450 Ethiopian claimants were denied status in 2007. (3) For the purposes of the present analysis, the Ethiopian Democratic Party (EDP) is presumed to be a legitimate political organization, i.e. one that is democratically constituted, with a party constitution or similar normal position that disavows terrorism or similar methods that are contrary to international law. Amanuel is not an applicant whose background or political involvement would otherwise disqualify him from the accepted definition of refugee. (4) It is accepted that the EDP constitute a political opposition target for the Ethiopian government. Amanuel and his family are bona fide membe rs of the EDP and their personal political convictions are legitimate self-expression; the actions undertaken by Amanuel in the course of his dealings with the government and its police arms are not a contrivance created to secure asylum; as noted below, some of the actions such as attending at a police station to complain may have been foolhardy, but they were not manufactured asylum seeking grounds. The circumstances surrounding the disappearance of Saleh are consistent with this position. However, these particular facts only corroborate Amanuels position (recognising they are largely hearsay assertions) , as opposed to constituting stand alone persuasive evidence of the risks faced by Amanuel and his family in Ethiopia. (3) The cumulative effect of the events in 2006 concerning the house search by the Ethiopian police is also supportive of Amanuels position. As with the poorly corroborated evidence of Salehs disappearance, the weight to be attached to the single incid ent involving the search of Amanuels family is limited. This proposition is advanced in recognition that the official reason for the search is a seemingly dubious pretext, but the acts of threatened and actual violence directed to Amanuel, his mother Mary and his young sister are themselves not sufficient grounds on which to build a refugee cliam. The totality of the circumstances is important to the analysis provided below. (4) The arrest and beating of Amanuel for his comments concerning the Ethiopian Constitution are relevant on two distinct bases. The first is that Amanuels ability to freely express himself concerning the scope of constitutional protection is very limited; the statements that he made were legitimate self-expression in any Western democracy, a fact that is also not determinative of the issues. However, by being labeled a criminal and opponent of the governing regime is evidence that Amanuels long term safety is directly related to his political views. There is a second and insidious element to this portion of the scenario. It may be concluded that given the swift official response to Amanuels comments made in the relative obscurity of a law class, the government are monitoring his words and actions. This circumstance is consistent with someone who is now a targeted political opponent, and when taken together with the other facts identified in the scenario, these circumstances provide a compelling prima facie factual basis on which to consider the legal elements of the asylum application. III. The Legal Framework As noted in the Introduction, the legal framework against which the identified facts must be applied has three constituent elements, the relative importance of each to a UK application is considered below. These elements are the International law; the applicable EU provisions; UK statutes and related case law. (1) International law à ¢Ã¢â€š ¬Ã¢â‚¬Å" the United Nations Convention The convention is a component of international law that has been incorporated by specific reference into EU and UK law. The definition of refugee is central to Amanuels position; he must establish that he has a well-founded fear of persecution that is a result of his political opinions; he must also establish that he is unable to obtain the requisite protection of his rights in Ethiopia from the domestic authorities. (2) European Union refugee provisions The EU provisions concerning asylum and refugee status are consistent with the general UN approach. In recent years, a significant body of EU case law has developed concerning the distinction between an asylum seeker and economic migrants. The Hague Programme has four distinct elements, of which the qualification Directive is the most pertinent to Amanuels case.The central theme of this jurisprudence has been the stated fear that bogus asylum seekers will subvert the legitimate asylum claims; the EU approach is therefore directed to the prevention of illegal immigration that is cloaked in refugee clothing. The ECHR provides a clear prohibition against the forced return of any person to their country of origin by a member state where the subject may be detained or tortured for their political views. By virtue of the Human Rights Act, 1998, this provision is submitted as operative in UK law. (3) The UK Nationality, Immigration and Asylum Act (NIA) and the relevant case law As a general proposition, the UK applies the UN Convention definition of refugee as stated above.The NIA also provides that an asylum c laim must be made as soon as reasonably possible upon the claimants arrival in the UK. It is noted that not only has Amanuel evidently complied with this provision, he brings proverbial clean hands to his application, in contrast to asylum seekers who make their applications based on false travel documents or whose application is advanced after they are held by UK authorities for failing to comply with entry provisions. A large subset of the UK case law decided in the past 15 years on refugee issues has centred on the overarching question of asylum overload as a threat to the general stability of UK society.In particular, the Court of Appeal has noted that the often stated right to asylum is nothing of the sort. The Court has emphatically determined in a series of decisions that refugee status is not the equivalent of an international passport in the UK, the right extends only to the ability to apply, not the acceptance of the claim by the state. The UK cases have also d elineated the distinction between certain torture and imprisonment for ones political views on return to the country of origin, versus the degree of risk faced by the applicant of such a consequence. It is noted that as with all other elements of refugee claims, the UK courts do not assess the evidence to an absolute standard. The House of Lords definitions as established in the 1988 decision of Sivakumuran are applicable à ¢Ã¢â€š ¬Ã¢â‚¬Å" the fear of persecution must be well founded, with a reasonable degree of likelihood that the applicant will be subjected to such treatment, not proof beyond a reasonable doubt. The standard must apply whether the subjects return is voluntary or involuntary. IV. The Home Office position à ¢Ã¢â€š ¬Ã¢â‚¬Å" a critique The Home Office position as expressed in the scenario requires careful attention. There are aspects of the position that are frankly illogical; these are specifically noted below. However, as with the general thrust of Amanuels claim, the best approach to the Home Office views is to determine whether its cumulative effect, like that of the Amanuel claim, provides a persuasive basis on which to reject the asylum application. The Home Office position at its highest may be summarised as one that acknowledges that Amanuel and his family face a difficult time in Ethiopia given their political views. The Home Office position must not be taken as a sanction or otherwise endorse the methods employed by the Ethiopian government to quell apparent legitimate dissent. For the Home Office, the matter is clearly one of degree. Amanuels case, while regrettable in the extreme, does not in its eyes approach the stark circumstances necessary to grant the powerful remedy of asylum. Implici t in the Home Office position is a recognition that asylum cases are plagued by a lack of third party verification or other independent evidence; it is generally the word of Amanuel as to the degree of his and his families difficulties with the government that are at the heart of his case. This is a legitimate concern but not an insurmountable barrier in the present application. This observation is made in the notwithstanding the patent illogic of elements of the Home Office position. The most obvious of these are: (i) The Ethiopian governmental ability to keep records is not proof of anything; if an enemy of the state were detained in contravention of international law, it is logical that the prisoner not be listed on an official record (ii) Amanuel went looking for trouble by attending the police station, yet his pursuit of a complaint is evidence that Ethiopia provides a meaningful complaints process to its citizens (iii) The apparent acceptance of normal police a ctivity in Ethiopia as including a beating or threats of physical violence However, even with such circumstances stripped away from the Home Office position, the totality of the evidence and the conclusion that Amanuels case falls short of the requisite legal standard cannot be rejected out of hand. IV. Other Circumstances This paper establishes that Amanuels application must fall within the ambit of current UK refugee law. In the alternative, if he were to be unsuccessful in his application on the basis that the evidence tendered is not sufficiently compelling or it otherwise lacks sufficient third party verification, Amanuel has established that on a humanitarian basis he ought to be permitted a temporary stay on humanitarian grounds. Taken in totality, notwithstanding questions of sufficiency, there is no question that Amanuel faces a threat to his personal safety if he were compelled to return to Ethiopia. The immediate government response to his in-class opinions concerning the Ethiopian Constitution is powerful evidence in this respect. V. Conclusion It is submitted that no single incident as alleged by Amanuel in the present scenario will provide a sufficient factual basis on which a viable asylum application can be advanced under UK law, a jurisprudence that encompasses the relevant provisions of UN and EU asylum law. When the facts are assessed in totality, it is submitted that Amanuel should succeed with his refugee claim. Whether his action in provoking the local government as discussed were foolhardy is not a disqualification of his claim. A plain and uninterrupted linkage can be made between his political views and the likely harm that will befall him if he must return to Ethiopia.

Geography And The Geography Of Greece - 1604 Words

When telling about the geography of Greece, all five themes of geography need to be addressed. The five themes of geography are location, place, region, movement, and human-environmental interaction. The absolute location of a specific place is the coordinates of a map using longitude and latitude. A place is an area that is defined by its physical and cultural characteristics. A region is areas that are similar and have definite characteristics. The movement is the way people, products, and ideas travel from one place to another. Human-environmental interaction is the relationship between humans and the environment in a certain area. The location of the country of Greece can be stated in many different ways. The absolute location is given in latitude and longitude. Latitude is the imaginary lines that run horizontally on the Earth’s surface (World Atlas, 2015). By definition, longitude is the imaginary lines that run vertically through the North and South poles (World Atlas, 2015). The absolute location of the capital of Greece, Athens is 39 degrees North and 22 degrees East. The country of Greece can also be described by using relative location. Relative location is defined by the nearby surroundings or countries close to Greece. For example, Greece is located in the northern and eastern hemispheres, and at the southern edge of the Balkan Peninsula, also known as southeast Europe (World Atlas, 2015). Another way to state Greece’s relative location is that it is north ofShow MoreRelatedHistory And Geography Of Greece Essay2046 Words   |  9 Pagesof the team in charge of evaluating the possibility of entering in Greece to start an olive business, i took the time to dig into the history and geography of the country, its economy, how the government operates, the culture, and any potential ethical concern that will prevent us from entering the country. The following report covers each of this aspect and provides a recommendation on entering the m arket. Overview Greece, located in the Southern Europe and has a very irregular-shaped peninsulaRead MoreThe Geography Of The Greece And Roman Empires967 Words   |  4 PagesThe geography of the Greece and Roman Empires seem really similar, both on the coast lines of the Mediterranean Sea. But they are really different in terms of land and what crops they can grow. The Greece Empire while on the Mediterranean Sea had a vast problem with the weather conditions that the sea brought, many earthquakes, hurricanes and volcanoes. They also faced deep valleys and large mountain terrain. This land was not easy to farm wheat but it was a great place to grow olives and grapesRead MorePhysical Geography Of Greece By Alexis Abrams1865 Words   |  8 PagesGreece Alexis Abrams Tuesday PM class Baker college of Port Huron Physical geography of Greece is located in Southern Europe, bordering the Ionian Sea and the Mediterranean Sea, between Albania and Turkey. It is a peninsular country, possessing an archipelago of about 3,000 islands. With the vast percentage of its land comprised of hills and rugged mountains, Greece is one of the most mountainous countries in Europe. â€Å"Its 13,676 km toothy-edged shoreline is deeply indented by dozens ofRead MoreHow the Geography of Greece Influenced Greek History730 Words   |  3 Pages The geography of Greece has led to many events in Greek History, such as an internal and external war among city-states. Throughout Greek History, geography played a major role in the development of Greek culture. Mountain ranges in Greece caused isolation of city-states, allowed for small areas of land to be cultivated and provided an agriculture barrier, while the water such as the Mediterranean Sea was used to communicated with the outside world. The water surrounding Greece, like theRead MoreThe Culture and Geography of Greece Essay examples1756 Words   |  8 PagesOfficially titled the Hellenic Republic, Greece is a country whose historical and cultural heritage continues to influence the modern world through art, philosophy and politics. Greece is located in southern europe. Critically placed at the byroads of Europe, Western Asia and North Africa. Greece shares land borders with four countries: Albania, Bulgaria, Turkey, and the Republic of Macedonia. The country is greatly consumed by water to the south with over 1,400 islands, the largest of them beingRead MoreThe Role of Greeces Geography on Its Ancient Peoples844 Words   |  3 PagesAccording to legend, Greece’s geography played a principal part on ancient peoples’ lives. Ancient Greece’s geography both benefitted people and hurt them as well. 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The columns on the White House have the same kindRead MoreFour Traditions of Geography Essay858 Words   |  4 PagesFour Tradition of Geography The Four Traditions of Geography has many different assumptions and aspects of geography; aspects ranging from basic mapping and geometry, to the impact on nature of humans and the processes of the earth itself. Geographers can study and explain their research by selecting a certain tradition that leads to many different fields of geography. â€Å"There are four traditions whose identification provides an alternative to the competing monistic definitions that haveRead MoreScientific and Mathematical Contributions of Ancient Greece, China, and India1112 Words   |  4 Pagesand theories from ancient civilizations. Ancient Greece is often known for its strong advancements in philosophy. Ancient China is most well known for its inventions. The Ancient Indian civilization is usually not viewed as an important society in ancient history because they kept very few written records. Most people dont know just how important Ancient India actually was in history. The scientific and mat hematical contributions of Ancient Greece, China, and India have all had a great influenceRead MoreHuman Geography : The Way People Interact With Each Other And Their Environment844 Words   |  4 PagesHuman Geography is the way people interact with each other and their environment. Here are a few ways people interact with each other. People from countries in Africa and the Middle East migrate illegally to Europe through boat rides and walking by foot from country to country. Due to the war and poverty in their countries, people migrate to other countries. This causes separation of families, increased border control in European countries, and resentment against people of color in European countries

Millegan Creek Apartments

Millegan Creek Apartments- Financial Analysis Essay The Millegan Creek Apartment case is an example of a commercial loan. The parties involved in the commercial loan are JP Multifamily Inc. and Fleet Bank. Real Estate group at Fleet Bank want to find out whether or not to accept JPI’s proposed $15,715,000 loan for a 390-unit apartment project in Austin, Texas. The details about the each party, market and financial analysis of the project is outlined below. THE BORROWER -JP MULTIFAMILY INC. The Development Expertise JPI Multifamily Inc. (JPI) was founded in 1989 by John Carpenter and Frank Miller, who had worked together at Southland Financial. JPI, a first class developer, was known as a â€Å"merchant builder† meaning that they developed properties with the intention of selling rather than owning them. JPI had begun seriously investigate in Austin market in 1991. They purchased their first site in early 1992, which was a â€Å"trophy property†, 210-unit project, located in the Southwest part of Austin. The second property JPI purchased in Austin was located in the North Central Area which was a 342-unit project. And, finally the third apartment development in the Austin for JPI would be a 390 unit the Millegan Creek Apartments project. The investment Strategy JPI tried to achieve at least a 150 basis point spread between the initial yield and the current market capitalization rates. JPI was seeking development opportunities which provide a going-in cap rate (or cash on cash return) of at least 10% on the total project cost. They had developed approximately 2800 apartment units and 1,640 apartments. This record was in line their investment strategy of targeting a â€Å"holding period for development projects of two to three years. In 1994, they had eight properties with 2,700 units under construction, four of which were under agreement to be sold upon completion. THE LENDER-FLEET BANK Fleet Bank is being considered as a lender of the project. The Austin Market is a new market for Fleet Bank. Fleet wants to diversify its loan portfolio out of Northeast. Tom Hayden’s (a vice president in Commercial Real Estate at Fleet Bank) assignment was to seek financial opportunities in real estate in the State of Texas. Based on Tom’s research, JPI was an active developer who had survived the Texas real estate crash built a large number of apartments. SALIENT FACTS of MILLEGAN CREEK APARTMENTS PROJECT The Description of the Product: Jefferson at Millegan Creek Apartment would be a typical JPI luxury apartment complex. The apartment would target renters with high discretionary incomes who could probably afford a single-family home, but made a lifestyle choice to live in rental apartments. Site amenities included two swimming pools, a clubhouse, fitness center with sauna and steam rooms, and the laundry facilities. Standard features in each apartment included nine-foot ceilings, a security system, crown molding and upgrade white on white appliances. Location: The Millegan Creek site was located in Williamson County, adjacent to the city of limits of Austin and approximately 11 miles northwest of the central business district. The site was an irregular, rectangular shape consisting of about 21. 5 acres, with 904 feet of frontage along McNeil Road. Near Highways: Parmer Lane had recently been expanded from a two lane to a six-lane road and provided excellent north-south access. McNeil Road brought about 15,000 cars in an east west direction past the site each day and had recently been upgraded from a two lane to a five-lane road. In addition, McNeil Road was being extended three miles to connect to Wells Branch Parkway. Construction financing:The loan was being reviewed by Fleet Bank because the volume of deals JPI doing, their existing lenders (NationsBank, Guaranty Federal Savings Bank (in Dallas), BankOne, General Electric Credit Corporation had reached the limit of the exposure they wanted with any borrower. Construction problem:The site was level with no significant subsurface rocks, which would not create construction problem. Property Taxes :The site was outside the City of Austin which can provide lower property taxes and easy zoning approval. Total Project Cost: $19,644,000 Loan Amount: $15,715,000 Land Cost: $1,425,000 The holding period: Target holding period is two to three years MARKET ANALYSIS Regional Economic Drivers Austin housing market holds a comparative advantage and this advantage exists because; -it’s ranked sixth in the nation as a preferred location for a new manufacturing facility, Austin economy had always been universities and government as the state capital. Austin had a government workforce of over 110,000 including state, country and city employees and plus recently added 3,000 government sector jobs, -The location of project was close to many of Austin’s high tech companies. Texas Instruments had a big campus located across the street. Others in the area included: Abbott Laboratories, Tandem Computers, 3M, and State Farm Insurance. Apple Computers had also announced plans to build a new, $28 million, 300,000square foot facility to house its U. S. Customer support Service The other strength of Austin is that the city is filled with good universities. Companies were attractive to Austin economy by the presence of university –based research and its very desirable climate. Market demand Austin had experienced significant population growth and local economists expected these trends to continue. The average family size would continue to be about 2. 43 people per household. Job Growth Since the strength of the apartment market heavily dependent upon continued growth in the local market, local job market figures as follows; -As of September 1993, Austin’s employment totaled 425,800 and its unemployment rate was at 4. %. Austin added almost 30,000 jobs in the 1992-1993 periods. -The Texas Comptroller of Public Accounts projected job growth for the next two years to continue in the 3% to 3. 2% range. INVESTMENT DECISION I recommend Fleet Bank to approve the loan based on the market analysis outlined above and the attached financial analysis. The highlights of ratios listed in Exhibit 1 as follows; Cash on cash return 13. 70% , IRRe 5YR Hold 26. 48%, IRRo 5 YR Hold 16. 62% and Cap Rate (in) 10. 67%. In the loan calculations the interest rates is taken as 8%. Considering that nstitutional buyers in the region were paying cap rates in the 8% to 9% for the new apartments, JPI can achieve its investment strategy of obtaining at least 150 basis point for its investments. The debt service coverage ratio (DSCR) in commercial real estate finance refers to the primary measure to determine if a property will be able to sustain its debt based on cash flow. Typically most commercial banks require the ratio of 1. 15-1. 35 times (net operating income or NOI/annual debt service) to ensure cash flow sufficient to cover loan payments is on an ongoing basis. Building and planning a new club house EssayThe net investment in the property is the cost of the property minus the amount borrowed. One way to understand the ratio is to compare it to a return on a certificate of deposit. If the bank pays you an annual return of, say 5%, the 5% is the Cash on Cash return on the deposit. However, unless the property is owned free and clear, this is not a totally true comparison. The return you get is AFTER the mortgage and all other expenses have been paid. It can therefore fluctuate wildly. Whereas, if you put $200,000 in the bank in a CD you can be certain that you will get the return you expected. Please note that the Cash on Cash return does not include property appreciation which is a non-cash flow item until the year of sale. Therefore, if you are evaluating a property on a long-term basis, you need to focus more on the annual cash flow as it relates to your investment and focus less on property appreciation. CAPITALIZATION RATE (CAP RATE) The Cap Rate is a ratio that places a value on a property based on the net operating income (NOI) it generates which allows for a comparison of properties with different Fair Market Values (FMV). The Cap Rate is computed by taking the rental NOI and dividing it by the propertys FMV. The higher the Cap Rate, the better the property is said to be performing. Note that the Cap Rate is not a computation of an investment return but rather a way of understanding how a property will generate NOI so it can be compared to other properties. Cap Rate Practical Use #1 You can use the Cap Rate to value your property. Lets say that your property generates $30,000 of annual net operating income. Your real estate agent tells you that the Capitalization Rate in your area is approximately 10%. That would mean that the approximate fair market value of your property is $300,000 ($30,000 ? .10). Cap Rate Practical Use #2 Assume that you are comparing two properties. The first property has a projected NOI of $20,000 and an asking price of $500,000. The second property has a NOI of only $10,000 with an asking price of $110,000. Which one would the Cap Rate suggest is a better investment? The Cap Rate would suggest that the second property is a better investment since the Cap Rate is 9% ($10,000 ? $110,000) versus 4% ($20,000 ? $500,000). LOAN TO VALUE RATIO (LTV or LVR) The Loan-to-Value Ratio is the amount of a secured loan or mortgage divided by the fair market value of the property. For example, if your property is worth $100,000 and you have a mortgage balance of $50,000, the Loan-to-Value ratio on your home would be 50%. The LVR helps you quickly determine how leveraged your property is based on the fair market value of the property versus your cost. You can also use the LVR to determine the amount of your equity. If you have more than one loan secured against your property, add together the outstanding value of each loan in order to calculate the Loan-to-Value ratio. For example, if your home is worth $100,000 and you have a mortgage balance of $50,000, the Loan-to-Value ratio on your home would be 50%. However, if you also have a second secured loan on your home for $25,000, the Loan-to-Value ratio on your home would be 75% ((50,000 + 25,000) divided by 100,000). GROSS RENT MULTIPLIER (GRM) The Gross Rent Multiplier (GRM) is another way to value and compare properties. Used mostly in the apartment industry, the GRM is much like the Capitalization Rate except the gross rental income rather than the net operating income (NOI) is used to determine the value of a property. The GRM is calculated by dividing the fair market value of the property by the monthly gross rental income. EXAMPLE: If the sales price for a property is $200,000 and the monthly gross rental income for a property is $2,500, the GRM is equal to 80 ($200,000 ? $2,500). INTERNAL RATE OF RETURN (IRR) When an investment creates differing amounts of annual cash flow, a rate of return can be determined by calculating the Internal Rate of Return (IRR). The formula for computing the IRR is very complicated but essentially an IRR is the rate needed to convert (or discount) the future uneven cash flow to equal your initial investment or down payment. EXAMPLE: Assume a cash flow of $100 in the second year. Also, assume that in order to generate that $100, you had to invest $500. In this example, you have an outflow of $500 the first year and an inflow of $600 in the second year ($100 earnings plus the $500 return of your initial investment). To convert or discount the $600 back to todays dollars to equal your initial investment of $500, a discount rate of 20% is required. Thus, your IRR is 20%. In other words, IRR is the discount rate at which the net present value of all future cash flow is zero (discounted future cash flows = starting investment amount). The net meaning you subtract your initial investment. Leveraged vs. Unleveraged IRR When you use debt to purchase a property, you are using leverage. The program computes your IRR based on how debt impacts your cash flow. As a result, you can compare the leveraged and unleveraged IRR to determine how debt is helping or hurting your investment results. MODIFIED INTERNAL RATE OF RETURN (MIRR) The Modified Internal Rate of Return (MIRR) is used to correct a significant inherent problem with the IRR calculation. The IRR formula   assumes that you are reinvesting the annual cash flow at the same rate as calculated by the IRR. As a result, when you have a property that generates significant cash flow, the calculated IRR will overstate the likely financial return of the property. The MIRR allows you to enter a different rate that is applied to the propertys annual cash flow. Using the MIRR will more closely mimic the real rate of return since operating cash flow is rarely invested at a higher rate than a bank savings rate. The finance rate is the annual interest rate paid to borrow money during years the property experiences a negative cash flow. The reinvestment rate is the rate of return earned on the excess cash flow that is generated by the property.