It is clear to me that some students did not completely read the assignment for the last project.  Make sure that you read this assignment in its entirety and be sure that you follow all directions.

On the break-even project, many students looked at break-even issues associated with different rent levels.  Some students speculated that at higher rent prices, several costs are likely to decrease.  For example, assumptions were made that higher rent prices would result in tenants who are more likely to pay all bills, who are likely to create less wear-and-tear, and who are likely to be less transient with regard to completing the lease term and renewing the lease.  Most of those student break-even assessments were done to determine how long it would take for the project to return fixed and variable costs if that rent price scenario resulted in occupied apartments; they were not intended to determine whether or not that rent price would be sellable. 

Other reports looked at sceneries associated with determining whether it makes meaningfully more financial sense to complete the entire project at once or whether it makes more sense to complete the project in phases.  We now know that our client is moving successfully toward a phased project with Phase 1 well on its way - a direction that even our client couldn't conclusively predict when we first met.  Our client's lender has since released enough funding to finish one building while also indicating a hesitancy to release what is required to finish the remaining two buildings.  With this development in this dynamic live case, we no longer any reason to determine whether it is best to move in phases or all at once - the decision has already been made.

Our focus, then, seems now to be pushed toward determining what should be the rent price, and that is associated with how to position the apartments.  Again, students who had based the break-even analysis on sceneries of rent price determined differences in the amount of time to break-even not simply due to obvious differences in revenues, but also due to speculated differences in costs.  It apparently is desirable to position the apartments with a higher rent for reasons beyond revenues, but there is, of course, a limit on just how high the rents could go.  Our project objective seems to have evolved to one of appropriately positioning the apartments before the first building is completed and rented.

Write a report that includes a list of the ten (10) most important questions that we must answer in order to conduct an analysis that can lead to a recommendation regarding where to position Mullins Court in the marketplace.  Even if you believe that we (or you) already have answers to some questions, list and discuss the reasons for the need to address that issue anyhow.  Justify the entire set of questions by explaining why your list is a complete set for meeting this objective.

You do not have a page limit, but longer isn't necessarily better; a longer report is often more confusing.  Note that issues of spelling, punctuation, sentence structure, and such are important considerations at the MBA level. 

Include a cover page with your name as the LAST page of your submission.  Do not put your name anywhere else on the report - this is to assist me in "blind" assessment of student submissions.

This is not a research project; you are being asked to advise on information collection, not to collect any information.  You should be able to write this report in the normal amount of time that is allotted to a single class period using only our class discussions and materials that have been used in this course.  Importantly, you are expected to base your report on issues that have been discussed in class; "shooting from the hip" is likely to result in a failing grade.  You are writing this report as a professional proposal to me; quoting or citing a textbook, a website, or me is inappropriate.

The exam is due by 8:00 AM, Sunday, 8 OCT 06.  You may e-mail as a word-processed attachment or submit personally.  Note that the doors to enter the building are often locked prior to closing.  If you e-mail your exam as an attachment, you will get a reply saying that the attachment has been received and successfully opened; send a reminder or call if you do not.  I will be at a conference on the Friday and Saturday before the exam is due, so if you submit the exam on the last two days, you won't get a reply until Sunday or Monday - wait until Monday to contact me.  Send to:

robert(dot)owen(at)tamut(dot)edu

phone: 903-223-3010