Angus Cartwright III Case Solution & Answer

Angus Cartwright III

Investors Criteria

1.Best Option for Investor

Property of 900 stony walks is the best option for the investor as compared to the other three options. And the investor is able to manage the cash amount for it because it is in the range of his requirement.

2.Higher Profit

Higher profit should be attained by investing in the Property of 900 stony walks, it gives a higher return so it is best for the investor to spend their money on it. Here greater shareholder interest will generate in the future(FERNANDO, 2020).

3.Risk

The best option for investors to go for property under low risk would be Alison Green, it has lower financial obligations and also have higher IRR due to a higher amount of stocks.

4.Increase In desired equity

The investor wants to go for Alison Green for increasing the equity share, it has high equity shares and lowers debt margin. It clearly shows that it will create more returns in the future as compared to the other property options.

5.Liquidity Margin

The investor wants to invest in that option that has lower debt and tax rate because it will decrease the liquidity margin and generate higher returns so due to this reason the investor are very interested to invest in it.

6.Internal Rate of Return

The higher internal rate of return would be obtained by 900 stony walk. Therefore it’s a best or important option for generating higher return of the investment (FERNANDO, Internal Rate of Return (IRR), 2020).

7.Less Liquidity

An important option for investors with regards to the interest of more earnings would be the property of Alison green because it generate more return and needs low liquidity.

8.Manageable Property

Alison Green is the most manageable property for investors because by the comparison of the other three options it has high equity and lower debt ratio.

Conclusion

Alison Green and 900 Stony Walk both are the best options because these have a high net present value that is $734,290 and $699,520. By investing in these two properties the diversification will increase it reduces risk which is also a good point for Judy and this also might result in Judy receiving a low management fee (SEGAL, 2020). Two other properties Ivy Trace and the Flower Building are not the best options because they have a higher internal rate of return, due to this these both have low net present value so it is not good to invest in these options…..

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