Hi folks,
I'm wondering how people define 'development margins' or otherwise measure the return on their development activities.
Is it common to just take the net profit at the end of the project divided by your initial equity? If so, shouldn't you be annualising this return?
For those of you doing development feasibilities, do you base your go/no-go decision on an NPV or IRR calculation?
Thanks,
PD
I'm wondering how people define 'development margins' or otherwise measure the return on their development activities.
Is it common to just take the net profit at the end of the project divided by your initial equity? If so, shouldn't you be annualising this return?
For those of you doing development feasibilities, do you base your go/no-go decision on an NPV or IRR calculation?
Thanks,
PD