Valuing the Market Risk ?.

Hello,

 

I am a new memebr in this club.  I am Student in CA institute and working as a Asst. Manager Accounts in Qatar. We are planning to go for a purchase/Construction of Building thru bank Loan as we are paying huge rents. I have been asked to prepare a Investment Proposal.  The loan will be or 40-50 Mio @ 7-8% pa. I Calculated the Expected Rent Wewill be paying for this period based on the current market trend and expected growth and NPV for the same.  Also the Expected increase in Sales, Manpower and Other OHs..(Based on the projected Sales Figure). Also the NPV for the outflow. Its positive and I took @ 8% & 10%. When i have to consider the market Risk, how to go about it? How to show the adjustments of Market Risk in terms of Money? other Than this what are all the Other areas I should give in my proposal. I request you to Guide me on this.



thanks

alexsunny

Replies (2)
Quick Summary
A new member is seeking guidance on preparing an investment proposal for a building purchase or construction project financed by a significant bank loan. They need to understand how to incorporate and quantify market risk into their financial projections, beyond calculating NPVs for rent, sales, and outflows. The discussion aims to provide advice on other essential components for the proposal and how to address potential market risks.

Originally posted by : Alex Sunny
Hello,

 

I am a new memebr in this club.  I am Student in CA institute and working as a Asst. Manager Accounts in Qatar. We are planning to go for a purchase/Construction of Building thru bank Loan as we are paying huge rents. I have been asked to prepare a Investment Proposal.  The loan will be or 40-50 Mio @ 7-8% pa. I Calculated the Expected Rent Wewill be paying for this period based on the current market trend and expected growth and NPV for the same.  Also the Expected increase in Sales, Manpower and Other OHs..(Based on the projected Sales Figure). Also the NPV for the outflow. https://ometv.onl https://chatroulette.top https://omegle.wtf https://bazoocam.cam Its positive and I took @ 8% & 10%. When i have to consider the market Risk, how to go about it? How to show the adjustments of Market Risk in terms of Money? other Than this what are all the Other areas I should give in my proposal. I request you to Guide me on this.



thanks

alexsunny

 

thanks my issue has been fixed.

How did you deal with it? What kind of market risk were you expecting? Interest rate risk? 

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