Domus Developments: To Build or Not to Build?

Case Solution

Elizabeth M.A. Grasby, Erica Furgiuele
Ivey Publishing ()

The project manager of a development company is thinking about the future of the next innovative development project, which was originally conceived in 2008, but has yet to be implemented for various reasons. The project manager wants to assess the project financially, including the company’s current cash position, should the company continue with the construction process; he also wants to evaluate other relevant qualitative considerations. Alternatively, the company could sell the land, which has appreciated dramatically in value. All decisions would take into account the objectives and reputation of the company in the industry.

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