Valuing the Market Risk

Rameshkrishna (Finance Controller) (24 Points)

21 April 2008  

Dear All.

Good Morning to All of you.

I am a new memebr in this club.  I am Student in CA institute and working as a Asst. Manager Accounts in Qatar.

We are planning to go for a purchase/Construction of Building thru bank Loan as we are paying huge rents.

I have been asked to prepare a Investment Proposal.  The loan will be or 40-50 Mio @ 7-8% pa.

I Calculated the Expected Rent Wewill be paying for this period based on the current market trend and expected growth and NPV for the same.  Also the Expected increase in Sales, Manpower and Other OHs..(Based on the projected Sales Figure).

Also the NPV for the outflow. Its positive and I took @ 8% & 10%.

When i have to consider the market Risk, how to go about it?

How to show the adjustments of Market Risk in terms of Money?

other Than this what are all the Other areas I should give in my proposal.

I request you to Guide me on this.

Thanks & Regards.

Rameshkrishna