Abstract
Judy and John DeRight, looking to diversify their investment portfolios, have retained Angus Cartwright, Jr. to identify prospective real estate acquisitions. Mr. Cartwright has four potential properties that he feels merit an in-depth financial analysis. The case provides an opportunity to examine the various components of real estate return--cash flow, tax benefits, and futures--and measure the profitability of a proposed investment through the calculation of net present value, internal rate of return, and capitalization rate.
Keywords: Acquisition;
Cash Flow;
Investment Return;
Investment Portfolio;
Taxation;
Balanced Scorecard;
Valuation;
Citation:
Hatten, Kenneth J., William J. Poorvu, Howard H. Stevenson, Arthur I. Segel, and John H. Vogel, Jr. "Angus Cartwright IV." Harvard Business School Case 375-376, September 2004. (Revised from original June 1975 version.)