The acquisition decision file
Bring your evidence, calculations, decisions, and controls together in a finished self-study submission.
Build your decision packet.
Prepare a hypothetical acquisition packet for a $180,000 purchase, $45,000 rehabilitation, $12,000 carrying and financing costs, $18,000 selling costs, and a $300,000 expected sale. Then test a $280,000 sale and a $10,000 rehabilitation overrun. Figures are illustrative, not a valuation.
- An evidence ledger with sources, dates, unknowns, and the intended exit
- A base and downside project-cost bridge, plus a separate cash calendar
- An offer ceiling at a $35,000 target profit with every cost included
- A buyer/closing handoff checklist and an independent-review question list
- A one-page proceed, investigate, or decline memo
Review the worked example and grading guidance
Base costs are $180,000 + $45,000 + $12,000 + $18,000 = $255,000, leaving $45,000 before any omitted costs or taxes. The downside costs rise to $265,000 while sale proceeds fall to $280,000, leaving $15,000. At a $35,000 target profit, a base-case purchase ceiling is $300,000 − $45,000 − $12,000 − $18,000 − $35,000 = $190,000. The stressed ceiling is $280,000 − $55,000 − $12,000 − $18,000 − $35,000 = $160,000. These are conditional arithmetic results. An acceptable packet labels the sale range unverified, requests comparable evidence and scoped bids, assigns authority/title questions to qualified reviewers, and preserves a cash calendar. A defensible decision can be “investigate” rather than an unconditional offer.
Compare the reasoning with your response. Identify missing assumptions, correct any calculation, and explain why a different decision may be justified by different evidence.
Self-review your finished packet.
Completion requires a worked response of at least 80 characters, every mastery criterion checked. This records self-study completion, not professional qualification.