This assignment in Financial Management deals with capital budgeting and target calculation of public fees. By using dynamic methods of capital budgeting, the amortization of a restoration project of an existing derelict mausoleum on a historic cemetery in Berlin-Schoeneberg is calculated. The conversion into a columbarium generates a cash flow, which equals the project´s expenses after a defined period of time. The question, how high a convenient usage fee for the rental of urn niches in the columbarium would be, is answered in this assignment.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Conversion of a Mausoleum Into a Columbarium
- Present Situation
- Future Situation
- Project Costs
- Project Cash Flows
- Dynamic Method of Target Calculation
- Methodology of Net Present Value Analysis
- Determinants for Project Calculation
- Calculation of the Project Net Present Value
- Present Usage Fees
- Targeting of Usage Fees
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This assignment in Financial Management focuses on capital budgeting and target calculation of public fees. It examines the amortization of a restoration project for a derelict mausoleum on a historic cemetery in Berlin-Schoeneberg, using dynamic methods of capital budgeting. By converting the mausoleum into a columbarium, a cash flow is generated that aims to cover the project's expenses within a defined period. This assignment addresses the question of an appropriate usage fee for renting urn niches in the columbarium.
- Capital budgeting and target calculation of public fees
- Amortization of a restoration project
- Conversion of a mausoleum into a columbarium
- Cash flow generation and project expense coverage
- Determination of appropriate usage fees for urn niches
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction provides background information on the Old St.-Matthew's Cemetery in Berlin-Schoeneberg, highlighting its historical significance and the dilapidated state of the Schultze mausoleum. It outlines the need for restoration and the project idea of converting the mausoleum into a columbarium to generate revenue for financing the restoration and future maintenance costs.
Chapter 2 delves into the conversion process, analyzing the current situation of the mausoleum, the envisioned future situation after the conversion, the associated project costs, and the expected cash flows. This chapter lays the foundation for understanding the financial feasibility of the project.
Chapter 3 focuses on the dynamic method of target calculation, specifically the net present value (NPV) analysis. It explains the methodology of NPV analysis, identifies the determinants for project calculation, and performs the NPV calculation based on different usage fees for the columbarium. This chapter explores the financial impact of different fee scenarios and provides insights into the project's profitability.
Schlüsselwörter (Keywords)
This assignment revolves around the key concepts of capital budgeting, target calculation, net present value (NPV) analysis, restoration project, mausoleum, columbarium, usage fees, and financial feasibility. It analyzes the financial aspects of converting a derelict mausoleum into a functional columbarium, considering factors such as project costs, revenue generation, and profitability.
- Quote paper
- Lutz Mertens (Author), 2011, Target Calculation - Conversion of a Mausoleum into a Columbarium, Munich, GRIN Verlag, https://www.grin.com/document/211955
