A group of private investors borrowed $34 million to build 250 new luxury apartments near a large university. The money was borrowed at 6% annual interest, and the loan is to be repaid in equal annual amounts over a 50-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 $12,000 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
N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 35 40 45 50 Discrete Compounding:=8% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP PIF FIA PIA AF 1.0800 0.9259 1.0000 0.9259 1.0000 1.1664 0.8573 2.0800 1.7833 0.4808 1.2597 0.7938 3.2464 2.5771 0.3080 1.3605 0.7350 4.5061 3.3121 0.2219 1.4693 0.6806 5.8666 3.9927 0.1705 1.5869 0.6302 7.3359 4.6229 0.1363 1.7138 0.5835 8.9228 5.2064 0.1121 1.8509 0.5403 10.6366 5.7466 0.0940 1.9990 0.5002 12.4876 6.2469 0.0801 2.1589 0.4632 14.4866 6.7101 0.0690 2.3316 0.4289 16.6455 7.1390 0.0601 2.5182 0.3971 18.9771 7.5361 0.0527 2.7196 0.3677 21.4953 7.9038 0.0465 2.9372 0.3405 24.2149 8.2442 0.0413 3.1722 0.3152 27.1521 8.5595 0.0368 3.4259 0.2919 30.3243 8.8514 0.0330 3.7000 0.2703 33.7502 9.1216 0.0296 3.9960 0.2502 37.4502 9.3719 0.0267 4.3157 0.2317 41.4463 9.6036 0.0241 4.6610 0.2145 45.7620 9.8181 0.0219 5.0338 0.1987 50.4229 10.0168 0.0198 5.4365 0.1839 55.4568 10.2007 0.0180 5.8715 0.1703 60.8933 10.3711 0.0164 6.3412 0.1577 66.7648 10.5288 0.0150 6.8485 0.1460 73.1059 10.6748 0.0137 10.0627 0.0994 113.2832 11.2578 0.0088 14.7853 0.0676 172.3168 11.6546 0.0058 21.7245 0.0460 259.0565 11.9246 0.0039 31.9204 0.0313 386.5056 12.1084 0.0026 46.9016 0.0213 573.7702 12.2335 0.0017 Capital Recovery Factor To Find A Given P AIP 1.0800 0.5608 0.3880 0.3019 0.2505 0.2163 0.1921 0.1740 0.1601 0.1490 0.1401 0.1327 0.1265 0.1213 0.1168 0.1130 0.1096 0.1067 0.1041 0.1019 0.0998 0.0980 0.0964 0.0950 0.0937 0.0888 0.0858 0.0839 0.0826 0.0817 N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 35 40 45 50 Discrete Compounding:=8% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP PIF FIA PIA AF 1.0800 0.9259 1.0000 0.9259 1.0000 1.1664 0.8573 2.0800 1.7833 0.4808 1.2597 0.7938 3.2464 2.5771 0.3080 1.3605 0.7350 4.5061 3.3121 0.2219 1.4693 0.6806 5.8666 3.9927 0.1705 1.5869 0.6302 7.3359 4.6229 0.1363 1.7138 0.5835 8.9228 5.2064 0.1121 1.8509 0.5403 10.6366 5.7466 0.0940 1.9990 0.5002 12.4876 6.2469 0.0801 2.1589 0.4632 14.4866 6.7101 0.0690 2.3316 0.4289 16.6455 7.1390 0.0601 2.5182 0.3971 18.9771 7.5361 0.0527 2.7196 0.3677 21.4953 7.9038 0.0465 2.9372 0.3405 24.2149 8.2442 0.0413 3.1722 0.3152 27.1521 8.5595 0.0368 3.4259 0.2919 30.3243 8.8514 0.0330 3.7000 0.2703 33.7502 9.1216 0.0296 3.9960 0.2502 37.4502 9.3719 0.0267 4.3157 0.2317 41.4463 9.6036 0.0241 4.6610 0.2145 45.7620 9.8181 0.0219 5.0338 0.1987 50.4229 10.0168 0.0198 5.4365 0.1839 55.4568 10.2007 0.0180 5.8715 0.1703 60.8933 10.3711 0.0164 6.3412 0.1577 66.7648 10.5288 0.0150 6.8485 0.1460 73.1059 10.6748 0.0137 10.0627 0.0994 113.2832 11.2578 0.0088 14.7853 0.0676 172.3168 11.6546 0.0058 21.7245 0.0460 259.0565 11.9246 0.0039 31.9204 0.0313 386.5056 12.1084 0.0026 46.9016 0.0213 573.7702 12.2335 0.0017 Capital Recovery Factor To Find A Given P AIP 1.0800 0.5608 0.3880 0.3019 0.2505 0.2163 0.1921 0.1740 0.1601 0.1490 0.1401 0.1327 0.1265 0.1213 0.1168 0.1130 0.1096 0.1067 0.1041 0.1019 0.0998 0.0980 0.0964 0.0950 0.0937 0.0888 0.0858 0.0839 0.0826 0.0817
