Instruction
Use Sheet “4” for this assignment.
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.
M3 Assignment - 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