2016 Round 1, Section 4: Going Around In Circles

Description
This workbook is taken from Round 1 of the 2016 Modeloff financial modeling world championships.

Follow the instructions in order to complete the model:

You are working for a real estate development company called ModelOff Real Estate (“MORE”). MORE are assessing the financial viability of a new project and have asked you to assist with this. The project is a residential real estate development of 1,630 houses in an area that the local council has identified as requiring new residential housing. The land for the houses is being sold by the council to enable this development to be undertaken and the council is currently undertaking a sale process for this land. MORE is one of two developers in this land sale process.

You will need to develop a model to forecast the cash flows for the project. The model will be quarterly and cover four years (16 quarters) from 1 January 2017 until 31 December 2020.

The key model inputs have been provided to you in the Excel file titled ‘MO16 Round 1 - Sec 4 - Going Around in Circles.xlsx’. Assume that all cash flows occur on the last day in the quarter. No inflation should be applied.

All other infomation and questions can be found in the attached PDF file.

Allotted time: 36 minutes

Once finished, feel free to upload your model to your own dedicated author channel!