Angus Cartwright IV Case Solution

Angus CartWright has located four different properties at various location across the country. These four buildings are named as Alison Green, Stony Walk, Ivy Terrace and Flower building. The details of the area, life, worth and related features of the four buildings are listed down in appendix A. As depicted by the exhibit, your equity investment might range from $2.75 million for Stony Walk to $6.5 million for flower Building. As far as the initial equity investment is concerned, all the four building are suitable as their equity investment is in your financial range. The mortgage terms of the loans for the fur buildings are also different. However, these terms are of little significance as your related investment is projected for sale at the end of 10th year of investment. 

A detailed cash flow analysis shows that Alison Green outputs relatively highest values of before tax cash flows. In this regard, the flower Building also yields high before tax cash flow figures. Only the Ivy Terrace building constitutes lease payments, and the rest only include the financing costs. At the end of 10th year, the net cash from sale for the four properties amounts to $10.856 million, $7.119 million, $7.613 million and $17.454 million respectively (in relation to names described above).