MBA280 Class Projects Flipbook Spring '25

Sensitivity

Land & Construction

Land and Construction Costs have a sizable effect on IRR

Sensitivity to Land Cost & Construction Cost

20% $104,000,000

$105,000,000

$106,000,000

$107,000,000 $

-

$27,000,000 $29,000,000 $31,000,000 $33,000,000 $35,000,000

20% 20% 20% 19% 19%

20% 20% 19% 19% 19%

20% 20% 19% 19% 19%

20% 19% 19% 19% 19%

0% 0% 0% 0% 0% 0%

$

-

0%

0%

0%

0%

Service Fees

Service fees marginally affect IRR but not significantly due to high opex associated with services

Sensitivity to Service Fee: assisted living & memory care

$

2,000.00 2,100.00 2,200.00 2,390.00 2,490.00 2,590.00 19.70% 19.70% 19.71% 19.73% 19.73% 19.74% 19.71% 19.72% 19.73% 19.74% 19.75% 19.75% 19.72% 19.73% 19.74% 19.75% 19.76% 19.77% 19.74% 19.74% 19.75% 19.77% 19.77% 19.78% 19.76% 19.77% 19.78% 19.79% 19.80% 19.80% 19.77% 19.78% 19.79% 19.80% 19.81% 19.82% 19.79% 19.80% 19.80% 19.82% 19.82% 19.83%

$ $ $ $ $ $ $

3,000.00 3,100.00 3,200.00 3,300.00 3,487.00 3,587.00 3,687.00

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