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

Financial Appraisal of Design excerptions - Essay ExampleThis compares with 4.15% for Option 1 and 7.4% for Option 3. Option 1 has the amplyest profit among all three options. Considering the circumstances, Option 2 causes the least change in terms of density, as it is a design intended to be complementary to existing 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 lever lower than the new(prenominal) two options. Shop rental is 200/m2 while office rental is 160/m2. In this case, building more shops will create 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 sense of taste 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 oth er two and its monetary viability is much better 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 detailed design such as a multi-story car park altered to thermionic valve car parking. This will definitely increase the building cost but will provide a new additional 840 m2 va corporationt 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 quality to reduce construction costs. At any rate, Option 1 has a high-profit level so even if portions of it are reduced, there is still the possibility of providing more open green spaces or public parks to in crease the attractions and appeal of the step forward tothe general public.