Loan project | Management homework help


You have completed your analysis of the financial feasibility of the proposed Hotel. Now let’s consider which of the two loans offers the best terms for TarHeel. If THD does proceed with the Hungerford project, which financing option—the base case or the optional case—would you recommend the firm choose? Why?

You should characterize the additional risks that THD is taking under the optional case financing scenario, and then make a recommendation.