Document Date
Meeting Description
Document Type
Meeting Date
Page Number
45
Financial Feasibility Analysis
ANALYSIS
GO / NO GO DECISIONS
¢ Internal rate of return
¢ Measure of investment efficiency
¢ The annual rate of investment value escalation
¢ Similar to a savings account interest rate
¢ How does it work?
* Measure against other investment types
¢ Reflects opportunity cost for risk-reward analysis
¢ What can I “live with?”
¢ “Typical” Market
¢ Rental Housing = 12% IRR
* For Sale Housing = 20% IRR
¢ Nashua Market (Reported)
* Rental Housing= 20%+ IRR
* For Sale Housing = 30%+ IRR
¢ What happens when I cannot reach my goal?
¢ Offer less for land Most Likely
¢ Go somewhere else y
¢ Sit on my money
¢ Bite the bullet Least Likely
ASSOCIATES INC
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