CONFIDENTIAL APIJAN 2018/EMT253/RES313/REM313 UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE DEVELOPMENT APPRAISAL COURSE CODE EMT253/RES313/REM313 EXAMINATION : JANUARY 2018 TIME 3 HOURS INSTRUCTIONS TO CANDIDATES 1 This question paper consists of four (4) questions. 2 ‘Answer ALL questions in the Answer Booklet. Start each answer on a new page a Do not bring any material into the examination room unless permission is given by the invigitator. 4. Please check to make sure that this examination pack consists of ’) the Question Paper an Answer Booklet — provided by the Faculty Parry's Valuation & Conversion Tables — provided by the Faculty 5. ‘Answer ALL questions in English, DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO This examination paper consists of 3 printed pages (© Hak Cipta Universiti Teknologi MARA CONFIDENTIALCONFIDENTIAL iz APIJAN 2018/EMT253/RES313/REM313 QUESTION 4 ‘The developer offered two (2) proposed project options as tabulated below where each project involves an initial cash outlay of RM240,000. The estimated net cash flows for both projects as follow: 7 2 al 4 ai 140,000 80,000 60,000 20,000 20,000. 20,000 40,000 60,000 100,000 180,000 a) Calculate the payback period for both projects. (5 marks) b) Discuss the importance of financing in property development. (10 marks) ©) Briefly explain any two (2) advantages of intemal Rate of Retum (IRR) Method in evaluating the feasibility of an investment. (10 marks) QUESTION 2 a) Describe the stages involved in property development process. (10 marks) b) Differentiate between market study and feasibility study. (S marks) ©) Discuss any five (5) components of a feasibility study report. (10 marks) QUESTION 3 Write short notes on the following: a) Boundary Marks. (5 marks) b) Non-discounted and discounted project evaluation techniques. (10 marks) (© Hak Cipta Universiti Teknologi MARA CONFIDENTIALCONFIDENTIAL 3 APIJAN 2018/EMT253/RES313/REM313 ¢) Built then Sell (BTS). (5 marks) d) Any five (5) regulatory bodies involved in the property development process, ( marks) QUESTION 4 Excellent Builder Sdn Bhd purchased a 20 hectares of vacant land with good residential development potential in Ayer Keroh, Malacca at RM60 per square meter. The details of the proposed development project are as follow: Tt 30% | RM180,000 Double Storey Terrace Houses 22X75" 20% | RM250,000 ¢) | Double Storey Semi-Detached Houses _| 35° X 80" 20% | RM650,000 ‘d) | Single Storey Detached Houses 49° X 85" 20% | RM450,000 e) | Double Storey Shophouses 20° X 60" 10% | RMB00,000 a) Define the principle of “Highest and Best Use" with regards to development lands. (6 marks) b) Calculate the Gross Development Value (GDV). (15 marks) ©) Identify any two (2) weaknesses of the Residual Method of valuation (5 marks) END OF QUESTION PAPER (© Hak Cipta Universiti Teknolog! MARA CONFIDENTIAL