andrew@agcapitalcfo.com

Stage 9 (2021) “To Sell or Not to Sell”

Professional Excel Templates for your Business

Stage 9 (2021) "To Sell or Not to Sell"

To Sell or Not to Sell

To Sell or Not to Sell is an actual case from the Financial Modeling World Cup 2021, Stage 9 (September 24-27) competition. This case deals with personal wealth modeling and making some financial decisions for Mr. Mogul.

Case description:

The objective of this case is to help Mr. and Mrs. Mogul make an investment decision regarding their two properties. They are considering selling their current home, Property 1, and using the net cash to buy Property 2 and offset a portion of their home loan or leasing Property 1 to receive net rental income. They want to make a decision by June 30, 2022.

The Moguls are facing a problem of choosing between two investment options, Sale and Lease, for their properties. They need to evaluate the financial feasibility of each option based on their quarterly 20-year forecast. If they decide to sell Property 1, they should consider costs associated with the sale that will reduce the net cash they receive. If they choose to lease out Property 1, they will have to bear the expenses associated with Property 1, such as rates and taxes, additional levies, insurance, and maintenance costs, and also hire a property agent to manage their rental contract.

The downloadable file consists of the following:
Task: PDF file with Case Materials; PDF file with Questions; Excel file with Case Assumptions
Solution: 2 Excel files with full Solution Models; PDF file with correct Answers in Bold

This model awarded 450 regular points + 50 Extra Points for a bonus question, while the whole 2h Stage allowed to earn 1,150 points in total.

For your questions/suggestions/consideration please reach out to the Organizing Committee of the Financial Modeling World Cup at info@fmworldcup.com
You can also buy tickets to participate in the future FMWC Stages at https://fmworldcup.com/shop/

 

Reviews

There are no reviews yet.

Be the first to review “Stage 9 (2021) “To Sell or Not to Sell””

Your email address will not be published. Required fields are marked *