Methods of effortless calculations in the feasibility report
This section describes one of the most effortless calculations in the feasibility report. This section calculates three things:
- Development Revenue
- Construction Cost
- End Value of the Products
Mainly, there are four sections in this sheet as explained below:
- Residential Construction Costs & Revenue: The cost you pay as residential construction and market value for what you will build.
- Commercial Construction Costs & Revenue: Calculation of construction costs for the commercial area and the value for which one can sell it.
- Agents Commission-Residential: The amount that you pay as the agent’s commission for residential areas.
- Agents Commission-Commercial: The amount that you pay as the agent’s commission for commercial areas.
- You will be updating the Residential Construction Costs & Revenue and Commercial Construction Costs & Revenue sections. You need not worry about the Agents Commission sections. For most people, it is usually only the Residential Construction Costs. For some, it is mixed, which is when Commercial Construction Costs apply.
- You can expand on the right and see that you have a construction costs component and then the cash flows section.
Let us look into their details in the following sections.