A group of private investors borrowed ?$27 million to build 250 new luxury apartments near a large university. The money was borrowed at 4?%

annual? interest, and the loan is to be repaid in equal annual amounts over a 35?-year period. Annual? operating, maintenance, and insurance expenses are estimated to be ?$4,000 per apartment. This expense will be incurred even if an apartment is vacant. The rental fee for each apartment will be ?$10,000 per? year, and the? worst-case occupancy rate is projected to be80?% Investigate the sensitivity of annual profit? (or loss) to? (a) changes in the occupancy rate and? (b) changes in the annual rental fee.

A group of private investors bomowed $27 million to build 250 new luxury apartments near a large university. The money was borrowed at 4% annual interest, and the loan is to be repaid in equal annual amounts over a 35-year period. Annual operating, maintenance, and insurance expenses are estimated to be $4,000 per apartment. This expense will be incurred even if an apartment is vacant. The rental fee for each apartment wi be $10,000 per year, and the worst-case occupancy rate is projected to be 80%. Investigate the sensitivity of annual profit (or loss) to (a) changes in the occupancy rate and (b) changes in the annual rental fee. E Click the icon to view the interest and annuity table for discrete compounding when the MARR is 4% per year. Complete the table below. (Round to the nearest thousands.) Occupancy Rate, S 80% 90% 95% 100% Rental Fee 75% 85% $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 S12,000 $13,000 S14,000 $15,000 $16.000