You decide to buy a new house. The house price is $450,000. You are considering take a 15-year or 30-year mortgage loan, and let's assume that the interest rate of 30-year mortgage loan is always 1% higher than that of a 15-year mortgage loan. For example, if the rate of 15-year mortgage loan is 5%, then the rate of 30-year mortgage loan is 6%. If you believe your annual cost of capital is 8%, conduct a sensitivity analysis to investigate the NPV difference of two mortgage options, by varying the down payment percentage between 3% and 20% and varying the 15-year mortgage interest rate between 2 percent and 8 percent. Ignore other information such as tax and mortgage insurance, etc. House Price Cost of Capital - 15 Years 30 Years 5% 20% Down Payment % Down Payment $ Loan Amount Fixed Rate Number of Payments Monthly Payment NPV of all monthly payments NPV of total payments Diff sensitivity analysis You decide to buy a new house. The house price is $450,000. You are considering take a 15-year or 30-year mortgage loan, and let's assume that the interest rate of 30-year mortgage loan is always 1% higher than that of a 15-year mortgage loan. For example, if the rate of 15-year mortgage loan is 5%, then the rate of 30-year mortgage loan is 6%. If you believe your annual cost of capital is 8%, conduct a sensitivity analysis to investigate the NPV difference of two mortgage options, by varying the down payment percentage between 3% and 20% and varying the 15-year mortgage interest rate between 2 percent and 8 percent. Ignore other information such as tax and mortgage insurance, etc. House Price Cost of Capital - 15 Years 30 Years 5% 20% Down Payment % Down Payment $ Loan Amount Fixed Rate Number of Payments Monthly Payment NPV of all monthly payments NPV of total payments Diff sensitivity analysis