Hi,

I don't understand why I am not getting the right profit (as provided in the hint should be "a loss a little over $2000). I think the issue lies in the fact that i need to convert the per stay costs to monthly costs; I'm not sure how to do that. How do i calculate the correct profit given what i have so far? Please help!!!

What I have:

Part 1: Modeling (including what-if and sensitivity analysis) The focus is Worksheet P1. A client is interested in renting out a lakefront property they have bought. To get a rough idea about whether this will be a profitable venture, you create a model in worksheet |P1|. This model includes possible revenues and expenses associated with renting over the course of a typical summer month, June in this case. The expected net profit/month is presented in cell N7. You've keyed in some assumptions about revenues and expenses based on what the client has told you, but that average nightly lease rate is just a wild guess. Figuring out what that needs to be is the goal of your analysis. Remember, this is just a quick rough model. If the results look promising, you'll do a more accurate model later. Fill in the formulas In the bright yellow cells, key in the appropriate formulas to perform the needed calculations. - The net nightly lease rate is the average rate less the fee due the host. - Total recurring (monthly) is just the sum of the monthly recurring costs. - Total recurring (per stay) is just the sum of the per stay costs. - Revenue is lease rate multiplied by the nights leased/month. - Recurring costs (monthly) - just reference the calculation you did elsewhere. - Recurring costs (per stay) - just reference the calculation you did elsewhere. - Est. net profit/month is the revenue less costs. - Cell N12 (for the 2D data table) - just reference the Est. net profit/month