Aof private investors borrowed $34 million to build 200 new luxury apartments near a large university. The money was borrowed at 5% annual interest, and the loan is to be repaid in equal annual amounts over a 30-year period. Annualgroupoperating, maintenance, and insurance expenses are estimated to be $3,000 per apartment. This expense will be incurred even if an apartment is vacant. The rental fee for each apartment will be $11,000 per year, and the worst-case occupancyrate is projected to be 85%. Investigate the sensitivity of annual profit (or loss) to (a) changes in the occupancy rate and (b) changes in the annual rental fee.Click the icon to view the interest and annuity table for discrete compounding when the MARR is 5% per year......Complete the table below. (Round to the nearest thousands.)Occupancy Rate, $85%Rental Fee75%80%90%95%100%$5,000150160170180190200 Discrete Compounding; i= 5%Single PaymentCompoundUniform SeriesCompoundSinkingFundCapitalRecoveryFactorAmountPresentAmountPresentFactorWorth FactorFactorWorth FactorFactorTo Find FTo Find PTo Find FTo Find PTo Find ATo Find AGiven PGiven FGiven AGiven AGiven FGiven PFIPPIFFIAPIAAIFAIP11.05000.95241.00000.95241.00001.050021.10250.90702.05001.85940.48780.537831.15760.86383.15252.72320.31720.367241.21550.82274.31013.54600.23200.28201.27630.78355.52564.32950.18100.231061.34010.74626.80195.07570.14700.197071.40710.71078.14205.78640.12280.172881.47750.67689.54916.46320.10470.154791.55130.644611.02667.10780.09070.1407101.62890.613912.57797.72170.07950.1295111.71030.584714.20688.30640.07040.1204121.79590.556815.91718.86330.06280.1128131.88560.530317.71309.39360.05650.1065141.97990.505119.59869.89860.05100.1010152.07890.481021.578610.37970.04630.0963162.18290.458123.657510.83780.04230.0923172.29200.436325.840411.27410.03870.0887182.40660.415528.132411.68960.03550.0855192.52700.395730.539012.08530.03270.0827

Sensitivity analysis is used to find that when one factor changes then how does other dependent…

A group of private investors borrowed $34 million to build 200 new luxury apartments near a large university. The money was borrowed at 5% annual interest, and the loan is to be repaid in equal annual amounts over a 30-year period. Annual operating, maintenance, and insurance expenses are estimated to be $3,000 per apartment. This expense will be incurred even if an apartment is vacant. The rental fee for each apartment will be $11,000 per year, and the worst-case occupancy rate is projected to be 85%. Investigate the sensitivity of annual profit (or loss) to (a) changes in the occupancy rate and (b) changes in the annual rental fee. A Click the icon to view the interest and annuity table for discrete compounding when the MARR is 5% per year. Complete the table below. (Round to the nearest thousands.) Occupancy Rate, $ Rental Fee 75% 80% 85% 90% 95% 100% $5,000 150 160 170 180 190 200

A group of private investors borrowed $34 million to build 200 new luxury apartments near a large university. The money was borrowed at 5% annual interest, and the loan is to be repaid in equal annual amounts over a 30-year period. Annual operating, maintenance, and insurance expenses are estimated to be $3,000 per apartment. This expense will be incurred even if an apartment is vacant. The rental fee for each apartment will be $11,000 per year, and the worst-case occupancy rate is projected to be 85%. Investigate the sensitivity of annual profit (or loss) to (a) changes in the occupancy rate and (b) changes in the annual rental fee. A Click the icon to view the interest and annuity table for discrete compounding when the MARR is 5% per year. Complete the table below. (Round to the nearest thousands.) Occupancy Rate, $ Rental Fee 75% 80% 85% 90% 95% 100% $5,000 150 160 170 180 190 200

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A
of private investors borrowed $34 million to build 200 new luxury apartments near a large university. The money was borrowed at 5% annual interest, and the loan is to be repaid in equal annual amounts over a 30-year period. Annual
group
operating, maintenance, and insurance expenses are estimated to be $3,000 per apartment. This expense will be incurred even if an apartment is vacant. The rental fee for each apartment will be $11,000 per year, and the worst-case occupancy
rate is projected to be 85%. Investigate the sensitivity of annual profit (or loss) to (a) changes in the occupancy rate and (b) changes in the annual rental fee.
Click the icon to view the interest and annuity table for discrete compounding when the MARR is 5% per year.
.....
Complete the table below. (Round to the nearest thousands.)
Occupancy Rate, $
85%
Rental Fee
75%
80%
90%
95%
100%
$5,000
150
160
170
180
190
200

Discrete Compounding; i= 5%
Single Payment
Compound
Uniform Series
Compound
Sinking
Fund
Capital
Recovery
Factor
Amount
Present
Amount
Present
Factor
Worth Factor
Factor
Worth Factor
Factor
To Find F
To Find P
To Find F
To Find P
To Find A
To Find A
Given P
Given F
Given A
Given A
Given F
Given P
FIP
PIF
FIA
PIA
AIF
AIP
1
1.0500
0.9524
1.0000
0.9524
1.0000
1.0500
2
1.1025
0.9070
2.0500
1.8594
0.4878
0.5378
3
1.1576
0.8638
3.1525
2.7232
0.3172
0.3672
4
1.2155
0.8227
4.3101
3.5460
0.2320
0.2820
1.2763
0.7835
5.5256
4.3295
0.1810
0.2310
6
1.3401
0.7462
6.8019
5.0757
0.1470
0.1970
7
1.4071
0.7107
8.1420
5.7864
0.1228
0.1728
8
1.4775
0.6768
9.5491
6.4632
0.1047
0.1547
9
1.5513
0.6446
11.0266
7.1078
0.0907
0.1407
10
1.6289
0.6139
12.5779
7.7217
0.0795
0.1295
11
1.7103
0.5847
14.2068
8.3064
0.0704
0.1204
12
1.7959
0.5568
15.9171
8.8633
0.0628
0.1128
13
1.8856
0.5303
17.7130
9.3936
0.0565
0.1065
14
1.9799
0.5051
19.5986
9.8986
0.0510
0.1010
15
2.0789
0.4810
21.5786
10.3797
0.0463
0.0963
16
2.1829
0.4581
23.6575
10.8378
0.0423
0.0923
17
2.2920
0.4363
25.8404
11.2741
0.0387
0.0887
18
2.4066
0.4155
28.1324
11.6896
0.0355
0.0855
19
2.5270
0.3957
30.5390
12.0853
0.0327
0.0827

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