Summary
You are a potential purchaser of the Futura Apartments complex. You have researched the situation and created a model worksheet to help you make a knowledgeable decision. Because there is some uncertainty surrounding the number of units you can rent each month and the monthly expenses, you need Crystal Ball to simulate your potential profit or loss per month. This knowledge will help you to determine whether or not this complex is worth purchasing.
Your research has led you to make the following assumptions: |
-$500 per month is the going rent for the area. - The number of units rented during any given month will be somewhere between 30 and 40. - Operating costs will average around $15,000 per month for the entire complex, but might vary slightly from month to month. |
What is the chance that you make at least $1 per month? What is the mean?
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