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We carried out the sensitivity analysis according to the 4 parameters as specified underneath in the desk (see appendix:three), to see the influence of improve in any of these parameters on NPV if they deviate from Original assumptions.

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41. but with this particular can attain the quantity of dangers connected including the risk of reduction if household cost depreciates, home loan fee increases, or routine maintenance cost improves. it exhibits that in any case get an inclusive choice will offer a good NPV.

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There are plenty of hazard aspects that have to be regarded just before purchasing a property. the risk components is usually dwelling pricing depreciation, increase in the house loan amount more than we assumed while in the worst-case circumstance, for suppose the price of home depreciates by 5% due to economic crises, in that case, Scott can encounter unfavorable ($fifteen,536.07) NPV, this reduction is bigger than in attain in in the beginning assumed condition.

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