This
subject is related to Building Economics from semester 5, this gives us a lot
of advantages to understanding this subject, as we already had basic knowledge
about of economics in building construction. Similarly with previous semester,
this subject also been lectured by Ms. Dianne Kok Hui Wei. She was very kind
and helpful lecturer. She is an experienced contractor and claim consultant in
the industry. She always talks about his life experiences and stories to make
the class full of laughs. Hence, we gained extra knowledge from his sharing of
what happened in the real industry.
Other
that, there are two coursework having in this module which are mid-term test
and group assignment which carry 20% and 30% of mark respectively. For the
group assignment, we were required to do analysis of the number of units for
each type of houses can be built for the proposed development project,
financial appraisal of the project using the Residue Method of Valuation, Cash
Flow of the project based on “Sell-then-Build” concept and at last, we need to
give personal comment on the viability of the project with a twelve percent
(12%) cost of capital and also comment on the cash flow and viability of the
project if based on a “Build-then-Sell” concept.
From
this assignment, It wasn’t easy for us to complete this project due to the
unfamiliar of doing projected cash flow. However, it was a good chance for us
to do it so that in the future we at least have been practiced from this
coursework. By that, i have learnt how to calculate the development cost and
produce a cash flow. A more precise estimation of cash flow is produced which
allows to estimate and forecast a project's viability.
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