Recreational Properties

Good Essays
Management Science – Workshop 2: Case Study Recreational Properties

1. 1. Framing the Decision 2. Recreational Properties obtained a package of options to acquire three parcels that would allow them to develop a ski resort. The company paid €500,000 for the package of options in June 2001. The options gave the company the right, but not the obligation, to acquire the three parcels at a (strike) price of €10 million in June 2002. 3. Furthermore, in order to develop the three parcels into a ski resort, the company needed leases from the European Union Environment Agency. When the company purchased the options, they expected the leasing agreement before December 2001. Unfortunately, a group of conservationists had filed a lawsuit against the EU Environment Agency. Because of this suit, the Agency Commissioner refused to consider the leasing agreement for the east side of the mountain until the outcome of the lawsuit.

4. a. Objective of Recreational Properties: The main objective of Recreational Properties is to analyse the options and outcomes with respect to the package of options realistically available to them. 5. b. Decisions to be made: c. i. Exercise the options and acquire the three parcels or not. d. ii. If the options are exercised, either sell the property without any development or develop the property at an extra cost of approximately €5 million. 6. e. Uncertainties involved in the decisions: These observations might be directly extracted from the decision tree in appendix 1. a. iii. Lawsuit outcome: The main uncertainty that Recreational Properties faces is that of the outcome of the lawsuit which translates into either getting the lease for the east side of the mountain or not. This uncertainty is estimated at 50% probability thereby reducing the expected value by €3.7 million. b. iv. Reputation: The uncertainty of the popularity of the

You May Also Find These Documents Helpful

  • Good Essays

    Recreational Properties 1. Framing the Decision Our objective is to maximise Anders Forsgen’s financial return from this developmental deal while keeping into account the fact that we have other option beyond this deal. We have two primary decisions to make viz. whether: a) we should exercise our option to buy The White Mountain Development, and, b) If we should develop White Mountain further to aim for higher returns The development of White Mountain is attractive because as it…

    • 888 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Recreational Therapy

    • 548 Words
    • 3 Pages

    what I wanted to be when I grow up… a recreational therapist! Recreational therapists plan, direct, and coordinate recreation-based treatment programs for people with disabilities, injuries, or illnesses. These therapists use a variety of modalities, including arts and crafts; drama, music, and dance; sports and games; aquatics; and community outings to help maintain or improve a patient’s physical, social, and emotional well-being. Recreational therapists often do a lot of work for…

    • 548 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    their rights, financial burdens, and health issues. In my research paper, I will discuss the effects of recreational marijuana on an individual, such as habits before and after taken. I will focus on the health issues that may and may not come with marijuana and the financial cost of another prohibition in modern day. I will explain the positive and negative reasoning for legalizing recreational marijuana within the U.S. I will be answering questions such as; “How will legalizing marijuana help our…

    • 254 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Recreational Facilities

    • 1256 Words
    • 6 Pages

    Katrina Poulos Wendy Hultsman PRM 304 September 26, 2012 User Behavior at Pinnacle Peak Pinnacle Peak Hiking Area is a multipurpose, exercise trail used for both hiking and equestrians. It is a 1.75 mile one-way trail in Rio Verde, Arizona with breathtaking views of the Sonoran Desert from every direction. Because the trail is not a loop, there is a lot of traffic on the trail, especially during the fall and winter seasons and on weekends. Families specifically enjoy this trail because there…

    • 1256 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    sex and glorify other negative aspects should be restricted. There should also be stricter enforcement of the ban on pornographic material. Teenagers with little or nothing to do during their spare time usually take to the streets. Therefore, recreational facilities such as those found in sports complexes should be available to all youths. at present, existing…

    • 461 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Recreational Drug Use

    • 435 Words
    • 2 Pages

    I. Introduction A.) How many times has a person heard about the consequences of drug abuse? Has anyone ever really taken those consequences into action? Drug abuse is one of the major problems in our world. B.) Should we try to stop the use and abuse of drugs? Yes we should, but its not going to be easy. C.) I’m going to need everyone of you to help. Why? Because it is becoming a problem with teens like us today. D.) Let me tell you what we will be covering: 1.) Why is drug use/abuse…

    • 435 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Legalizing Recreational Marijuana Tamika Deebs Broward College Abstract This paper will discuss Legalization of Marijuana for Recreational use. I will have several arguments which will include the negative and positive effects of the use recreational of marijuana. Also how the government would benefit from taxing recreation marijuana. I will compare the use of marijuana to the use of tobacco. I also plan on arguing how regulating marijuana will generate revenue…

    • 2439 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Recreational Drug Use

    • 1083 Words
    • 5 Pages

    Rader 1 Recreational drug usage consists of abusing psychoactive drugs for reason other then medical, work, or spiritual cause. These drugs can range from simple coffee down to heroin. These drugs are not healthy for the body, and have caused many deaths. HIV can be caused by non injected drugs. A United States poll, testifies that nearly two hundred million people use drugs at least once a year. This is truly what is wrong with our soceity today. No one can truly state each cause of drug use…

    • 1083 Words
    • 5 Pages
    Good Essays
  • Good Essays

    A recreational drug is categorized as any substance with pharmacologic effects that is either taken voluntarily for personal pleasure, or for satisfaction rather than for medicinal purposes such as cocaine, marijuana, or ecstasy. These types of drugs are easily found and are used by more than 22 million Americans ages 12 and older; nearly nine percent of the U.S. population. If these types of drugs were to be made legal, a positive change in the economy would be the ultimate outcome. In 1961…

    • 634 Words
    • 3 Pages
    Good Essays
  • Better Essays

    COMMUNICATION SKILLS TITLE: LACK OF RECREATIONAL FACILITIES Student Name: Peter Eleazer Khan ID: PS62351 PART-TIME Table of Contents Introduction3 Purpose and Objectives3 Background and Situation3 Project Scope……………………………………………………………………………………………………………………………..4 Methodology5 Data analysis on questionnaire ……………………………………………………………………………………………………………….6 Personnel7-8 Equipments and costing 9-12 Design Location and Criteria …………………………………………………………………………………………………… 13…

    • 2560 Words
    • 11 Pages
    Better Essays