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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