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4. Carry out a sensitivity analysis of the assumptions in this report. Using what~if scenarios, evaluate how changing the assumptions such as the selling price,
4. Carry out a sensitivity analysis of the assumptions in this report. Using \"what~if" scenarios, evaluate how changing the assumptions such as the selling price, capital costs. or rents may impact the report's conclusion. You may use the associated Excel spreadsheet for this. (a) Which assumptions would need to change and by howr much in order to lead to a revised course of action in the report? (6 marks) (h) Sensitivity analysis (12 marks) (c) BasE'n your results, what is your opinion of the degree of risk presented by this report's conclusion? (.5 marks) 8.1 Appendix A - Sensitivity Analysis Table 4 - Sensitivity Analysis Table Sensitivity Analysis to Change in Sales Price Sensitivity Analysis to Transaction Costs Sale Price % Chg Net Proceeds NR Change in 145,200 10% $ 81,090 19% Transaction % Change in N 138,600 5% $ 74,490 10% Costs % Chg Net Proceeds Proceeds 132,000 0% $ 67,890 0% (70,521) 10% $ 61,479 -9% 125,400 -5% $ 61,290 -10% (67,315) 5% $ 64,685 -5% 118,800 -10% $ 54,690 -19% (64, 110) 0% $ 67,890 0% (60,904) -5% $ 71,096 5% Sensitivity Analysis to Timing (57,699) -10% $ 74,301 9% One Year Discounted Discount Current NR NR Change in NR 5. 15% $ 132,000.00 $ 125,535 $ (6,465)6.2 Capital Budget Table 3 - Capital Budget Summary Capital Budget Summary Expenses ESA 1 $1,800.00 Commission $8, 120.00 Appraisal $350.00 Legal Fees $5,000.00 CMHC Profit Sharing $45,841.07 Contingency $2,998.49 Total Expenses $64, 109.55Table 1 - Project Budget Summary Project Budget Summary Revenue Sales Proceeds $132,000.00 Expenses ESA 1 $1,800.00 Commission $8, 120.00 Appraisal $350.00 Legal Fees $5,000.00 CMHC Profit Sharing $45,841.07 Contingency $2,998.49 Total Expenses $64, 109.55 Net Income (Loss) $67,890.45 Net Book Value $36,814.40 Net Gain to Office of Real $31,076.05 Estate A sensitivity analysis was completed for this project and the results are presented in Appendix A
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