Write about the Excel sheet analyzing that if it is a good idea to buy a house or keep renting an apartment, and the paragraph should contain:
1-Introduction: (state your business problem)
2-Assumption: (what some key assumptions!, how you approach analyzing the problem!)
3-Risk: (what are the risks to buy a house or keep renting one)
4-Result: analyze the scenario manager schedule.
5-Conclusion: conclude you thoughts and your decision.
Scenario Summary
high and yes
Changing Cells:
Rental Occupancy (H=High, L=Low)
First Time Buyer Bond Loans Available (Y=Yes, N=No)
Result Cells:
End-of-year Cash on Hand (Rent)
End-of-year Cash on Hand (Buy)
Notes: Current Values column represents values of changing cells at
time Scenario Summary Report was created. Changing cells for each
scenario are highlighted in gray.
H
Y
$3.713
$7.090
high and no
low and yes
low and no
H
N
L
Y
L
N
$3.713
($1.452)
$6.868
$7.090
$6.868
($1.452)
Tutorial Exercise Skeleton–Ted and Alice’s House Decision
Constants
Non-Housing Living Expenses (Cars, Food, Medical, etc)
Mortgage Amount for Home Purchase
Real Estate Taxes and Insurance on Home
Utilities Expense (Heat & Electric)–Apartment
Utilities Expense(Heat, Electric, Water, Trash)–House
House Repair and Maintenance Expenses
Inputs
Rental Occupancy (H=High, L=Low)
First Time Buyer Bond Loans Available (Y=Yes, N=No)
Summary of Key Results
End-of-year Cash on Hand (Rent)
End-of-year Cash on Hand (Buy)
Calculations
Apartment Rent
House Payments
Interest Rate for House Mortgage
Income and Cash Flow Statement (Continue to Rent)
Beginning-of-year Cash on Hand
Ted’s Take Home Wages
Alice’s Take Home Salary
Total Take Home Income
Apartment Rent
Utilities (Apartment)
Non-Housing Living Expenses
Total Expenses
End-of-year Cash on Hand
Income and Cash Flow Statement (Purchase House)
Beginning-of-year Cash on Hand
Ted’s Take Home Wages
Alice’s Take Home Salary
Total Take Home Income
House Payments
Real Estate Taxes and Insurance
Utilities (House)
House Repair and Maintenance Expense
Non-Housing Living Expenses
Total Expenses
End-of-year Cash on Hand
2014
2015
2016
$36.000
$200.000
$3.000
$2.000
$2.500
$1.200
$39.000
NA
$3.150
$2.200
$2.600
$1.400
2014
2015
2016
NA
NA
H
Y
NA
NA
2014
2015
2016
NA
NA
NA
NA
NA
NA
NA
NA
2014
$14.400
NA
3%
2014
NA
$24.000
$30.000
$54.000
NA
NA
NA
NA
$4.000
2014
NA
$24.000
$30.000
$54.000
NA
NA
NA
NA
NA
NA
$4.000
$5.540
$6.562
2015
$15.840
$10.118
NA
2015
$4.000
$24.480
$30.900
$55.380
$15.840
$2.000
$36.000
$53.840
$5.540
2015
$4.000
$24.480
$30.900
$55.380
$10.118
$3.000
$2.500
$1.200
$36.000
$52.818
$6.562
$3.713
$7.090
2016
$17.424
$10.118
NA
2016
$5.540
$24.970
$31.827
$56.797
$17.424
$2.200
$39.000
$58.624
$3.713
2016
$6.562
$24.970
$31.827
$56.797
$10.118
$3.150
$2.600
$1.400
$39.000
$56.268
$7.090
Rent
high
low
0,1
0,03
1st buyer
yes
no
0,03
0,06
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Formatting
Title Page
Citation
Outline
