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ACCT90004 Accounting for Decision Making

Present by:
Zhang Jianquan

718064

Pan Xin

709848

Chen Shenyi

582217

Zou Yuwei

719913

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Table of Content
1.0 Executive Summary----------------------------------------------------------------------4
2.0 Introduction---------------------------------------------------------------------------------5
3.0 House of World Culture------------------------------------------------------------------5
4.0 The Princess Pier-------------------------------------------------------------------------6
4.1 Site History---------------------------------------------------------------------------------6
4.2 Relevant Stakeholders------------------------------------------------------------------6
4.3 Suitability of Location--------------------------------------------------------------------7
5.0 Cost estimation in building HOWC --------------------------------------------------8
5.1 Funding Sources for project start-up-----------------------------------------------10
6.0 Operational Budgeted Income Statement-----------------------------------------12
7.0 Foreseeable Risks----------------------------------------------------------------------17
7.1 Interest Rate Risk-----------------------------------------------------------------------17
7.2 Commodity Price Risk------------------------------------------------------------------17
7.3 Liquidity Risk-----------------------------------------------------------------------------18
8.0 Non-Financial Costs and Benefits--------------------------------------------------19
8.1 Non-Financial Benefits-----------------------------------------------------------------19
8.2 Non-Financial Costs--------------------------------------------------------------------20
9.0 Additional useful information----------------------------------------------------------21
9.1 Market survey----------------------------------------------------------------------------21
9.2 Risk Management Strategy ----------------------------------------------------------21
9.3 Feasibility study report-----------------------------------------------------------------22
10.0 Conclusion-------------------------------------------------------------------------------23
11.0 Bibliography-----------------------------------------------------------------------------24

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1.0 Executive Summary

This report is mainly discussing about practicability and sustainability of the project of House of World Culture at the Princes Pier site. The history and purpose of establishment of Princes Pier and House of World Cultures will also be introduced briefly in the content. This report will further identify the relevant stakeholders and estimate the potential costs in developing the project, as well as a projection of profit and loss estimation when project is implemented in operation. To make this project more thorough, risks and control plan and some more information related to post-establishment will be provided at the end of the report.

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2.0 Introduction

The development of a House of World Cultures at the Princes Pier site is carried out by the entity Multicultural Arts Victoria and defined as a great opportunity to capitalize on the significant investment made in restoring the
Pier. The project of HOWC combined with the restoration of the Princes Pier site is believed to bring the entire foreshore precinct back to life. This report is aiming to analyse both financial and non-financial prospects to present the readers with feasibility of the project, and give readers one general direction on the stages of development of HOWC project.

3.0 House of World Cultures

The term House of World Cultures used in the project responds to the
Germany’s national centre. It refers the concept and usage of HOWC in Berlin and aims at holding multicultural activities to promote the cultural and artistic ideas through the whole world. HOWC lets the visitors have the connection with the world by involving them into the