Response Form 2

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ResponseFormforCase2_NF.doc

Response Form for Case 2 “Dharavi”

NAME

Instructions: Respond to the questions below.

You are developer Rance Hollen of Warwick Capital. You have just received an urgent email from one of your investors who has heard that you may be bidding on a “slum project” in India. Obviously, without the financial resources of your investors, you do not have a business, so you must prepare a presentation for this investor to convince them that what you are doing makes financial sense. To justify your investment decision, provide answers to the following questions:

Question 1

How do you expect to make money on this project? What variables (in Exhibits 5b and 5C) are the most important and how sensitive are they to changes? What are the trends affecting those variables?

My Response

Question 2

Who is involved in this decision and what are their interests? How has this project been received by the participants, especially the residents and politicians involved?

My Response

Question 3

Are there alternative ways to develop Dharavi? Why is the private sector involved in this project at all? Why can’t the private sector do this on its own without paying premiums to the government? What are the pros and cons of allowing private sector participation?

My Response

Question 4

Which of the following options you have chosen: (a) bid the minimum 10% premium on the project, (b) bid more than the minimum premium, or (c) walk away from the contest without bidding? Explain your decision.

My Response