Component	Amount	NPV (10% discount)
Down Payment	$ (500,000.00)	$ (500,000.00)
1st Mortgage Payment	($1,621,568.43)	$ (1,472,814.19)
2nd Mortgage Payment	($1,621,568.43)	$ (1,337,705.90)
3rd Mortgage Payment	($1,621,568.43)	$ (1,214,991.73)
Sales price if property appreciates	$ 3,979,530.00	$ 2,981,740.38
sales price if depreciates	$ 1,176,490.00	$ 881,508.05
invest down Payment	$ (665,500.00)	$ (498,638.84)
NPV		$ (1,160,902.24)

omponent 2: Conduct a sensitivity analysis of 50 percent in the discount rate (so 5% and 15%). Also conduct a sensitivity analysis for 10 percentage points in the likelihood of appreciation (so 65/35 and 85/15). The tables for these analyses should also go in the appendix. (Make sure all of the tables are appropriately labeled so the differences between each is clear.)When conducting the discount sensitivity, use the baseline probability of appreciation. Use the baseline discount rate when examining the sensitivity of appreciation likelihood.Assume the money market interest rate for the opportunity cost of the down payment matches the discount rate in each scenario. Are there any differences in how you think about the sensitivity of the discount rate versus the sensitivity of the appreciation likelihood?