Breakeven and Target-Point Analysis: Construction You are the financial analyst for a construction firm studying the feasibility of a new apartment complex in College Station. They need to understand the profitability of the units and the potential effects from fixed costs during construction. These are your estimates of the market and the costs to get there. Units Sold: 310 Rent per Unit: 1600$ per month Variable Cost per Unit: 90,000$ Fixed Cost: 6,400,000$ Discount Rate: 5% per year, compounded monthly Using a 10-Year outlook for rent payments, find the Present Value of a unit, then find the Net Profit/Loss for each unit sold, lastly, find the Net Profit/Loss after taking into account fixed costs. In other words, how much in total would the construction firm earn/lose in this scenario? Answers: PV of Unit: $150,850.16 Net Profit/Loss Per Unit Sold = 150,850.16 - 90,000 = $60,850.16 Total Earnings = 18,863,549.6-6,400,000 = $12.463,549.60 N 22