This case addressed audience for MBA and executive education is examined whether an LLC should invest in a real estate deal. The materials provide an easy way for applying discounted cash flow analysis from the perspective of equity investors in the LLC. Investors know the terms of the interest and principal payments on debt financing planned and have forecasts of rental rates, occupancy, depreciation and amortization, future sale price, various issues, and other items related to the p … Read more »

This case addressed audience for MBA and executive education is examined whether an LLC should invest in a real estate deal. The materials provide an easy way for applying discounted cash flow analysis from the perspective of equity investors in the LLC. Investors know the terms of the interest and principal payments on debt financing planned and have forecasts of rental rates, occupancy, depreciation and amortization, future sale price, various issues, and other items related to the property. The case can be used as an introduction to the estimation and analysis of the cash flows to the suppliers of equity. The setting provides an opportunity for discussion of tax issues and risks.
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Robert M. Conroy
Source: Darden School of Business
6 pages.
Release Date: 11 May 2011. Prod #: UV5636-PDF-ENG
943-945 Warren Street HBR case solution