Environmental Retro. Business and Marketing Essay.

Environmental Retro
Name Course Instructor Date
1.Which of the retrofit options should Linemar suggest to be implemented at Vintage Courts? What is the NPV and IRR for all of the suggested retrofits combined, including the doubled rents after the retrofits are complete?
3. What is the net add to the final sales price (year ten, based on stated cap rate) that these retrofitted items will provide?
There is a total of 400 units and at 98% occupancy there are 392 units that are occupied and the monthly rent collection is $ 239, 610 and the yearly collection would be $ 2,875,320.
Reduction in the operating expense reduction compared to the current situation would show whether it is worthwhile to invest in the project. Thus, the savings are reflected as cash inflows compared to the initial costs required to actualize the project, which are the outflows. The water heater requirement option will reduce both the cost of electricity and the cost of water. In evaluating the sustainable retrofit measures the climatic conditions are considered as this influences energy consumption and electricity charges
The NPV is estimated at $ 11, 712,994 and the IRR is determined as 14%, which is higher than 9.5%. In year 9, the cash outflow was estimated at $ (10,011,522), and there is increase in cash flows from year 1 and year 10. When considering all the refitting options and there is potential increase in rent, there is a positive NPV and this indicates t...