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A residential project in Dubai: margin and the effect of an overrun
The prompt
Harbrook Developers (a fictional company) plans 400 apartments in Dubai to sell at an average of AED 1.5 million each. Costs: land AED 120 million, construction AED 300 million, design, permits and fees AED 30 million, sales and marketing AED 30 million, financing AED 30 million. What is the profit and margin? What happens if construction costs run 10 percent over budget?
Your interviewer will share data as you ask for it. Ask clarifying questions, state a hypothesis, then lay out your structure out loud before you calculate.
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