Financial Appraisal of Design Options Essay Example | Topics and Well Written Essays - 750 words - 1

Financial Appraisal of Design plectrums - Essay ExampleThis compares with 4.15% for extract 1 and 7.4% for resource 3. Option 1 has the highest profit among all collar options. Considering the circumstances, Option 2 causes the least change in terms of density, as it is a design intended to be complementary to alive developments in the area. It is the least of all options in terms of density but the changes in mixed-used areas and the reduction in rents and prices make its basic value lower than the former(a) two options. Shop rental is 200/m2 magical spell office rental is 160/m2. In this case, building more(prenominal) shops will gain more profits. Option 1 has more shops proposed and so expected loss of profits is least. Moreover, Option 1 contains more mixed-used elements than the other two options and thus My preference is Option 1 as it will generate the highest profits among the three options. The gross development value of this option is also the highest compared with the other two and its financial viability is much ruin as profits are the most stable among all the options. Financial appraisal of Option 1 shows a relatively-high profit of 9,291,385, 54.01% at the end. It is still possible for Option 1 to change during its final little design such as a multi-story car park altered to underground car parking. This will definitely increase the building cost but will provide a new redundant 840 m2 vacant area. This area can be designed for business use and generate still more profits based on the sites original planning guidance. But on the other hand, a drawback of Option 1 is obviously its high construction costs as all the materials used will be high-class to attain its high value in the future. Some materials can be of lower fictitious character to reduce construction costs. At any rate, Option 1 has a high-profit level so regular(a) if portions of it are reduced, there is still the possibility of providing more open green spaces or public park to increase the attractions and appeal of the place tothe general public.