Financial feasibility study of an upcoming real estate project of Elegant Group

Abstract

This internship report reflects my experiences as an intern in the finance department of the head office in Elegant Group. The report also discusses the overview of the company and my project “Financial Feasibility Study of An Upcoming Real Estate Project of Elegant Group”. The report thoroughly analyzes the organizational structure of the company and its policies. Moreover, the report looks at the strategies implemented by the company in its operations. Financial performance of the company is analyzed and compared with past years performances. It will be seen that due to the covid pandemic, the company’s financial performance has been low compared to last year’s performance. Furthermore, a strategic analysis of the company has been conducted, exploring the company’s strengths, weaknesses, opportunities and threats. The company’s main strength has been observed to be its financial backing and its diverse business units and seems to be weak in implementing technology in its operations. As a result, facing threats from other companies who are technologically advanced. The report extensively focuses on the financial feasibility of a real estate project by Elegant Group. It focuses on the financial aspects and implications of the project. Moreover, the project deals with the calculation of costs associated with the project as well as calculation of the area, sales amount, timeline etc. Keeping the Covid-19 pandemic in mind, the financial estimates and assumptions have been taken accordingly and conservatively by the company. With those estimates all the financial calculations (cost of debt, cost of equity, etc.) have been determined and then the cashflows have been calculated respectively. The net present value, discounted payback period and the MIRR have been calculated and the values have been favorable for the project. So, the project should be accepted. Lastly, but not the least a scenario analysis have been done to test the condition of the project in different scenarios based on the covid-19 pandemic.