Sensitivity Analysis in Capital Budgeting Analysis

In the townhome investment model, do a sensitivity analysis by using a two-input data table.

The two input variables are Rent and Resell Value:

Rent ($16,000, $18,000,..., $30,000)

Resell value ($250,000, $280,000, ..., $550,000)

Show IRR as a function of these two variables. Use conditional formatting to highlight the unprofitable combinations.

Sensitivity Analysis in Capital Budgeting Analysis Rubric

Construct input variables	0.5 pt
Use the correct result cell	0.5 pt
Complete the data table	3 pts
Highlight correct cells using conditional formatting	1 pt
Total	5 pts