Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Investment:                                    
Land -30                                  
Construction -20 -30 -10                              
Operations:                                    
Rentals       12 12 12 12 12 12 12 12 12 12 12 12 12 12 12
Share of Retail
Sales       24 24 24 24 24 24 24 24 24 24 24 24 24 24 24
Operating and
maintenance
costs -2 -4 -4 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10
Real estate
taxes -2 -2 -3 -4 -4 -4 -4 -4 -4 -4 -4 -4 -4 -4 -4 -4 -4 -4
                                     
cash flow -54 -36 -17 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22
Depreciation 0 0 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
EBT -54 -36 -13 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18
Tax @ 35%       6.3 6.3 6.3 6.3 6.3 6.3 6.3 6.3 6.3 6.3 6.3 6.3 6.3 6.3 6.3
EAT -54 -36 -13 11.7 11.7 11.7 11.7 11.7 11.7 11.7 11.7 11.7 11.7 11.7 11.7 11.7 11.7 11.7
Add back: Depn     4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
Net annual cash
flow -54 -36 -9
15.7 15.7 15.7 15.7 15.7 15.7 15.7 15.7 15.7 15.7 15.7 15.7 15.7 15.7 15.7
                                     
0.91 0.84 0.77 0.70 0.64 0.59 0.54 0.50 0.46 0.42 0.38 0.35 0.32 0.29 0.27 0.25 0.23
PV F @ 9% 1 743 168 218 843 993 627 703 187 043 241 753 553 618 925 454 187 107
                                     
 - - 12.1 11.1 10.2 9.36 8.58 7.87 7.22 6.08 5.58 5.12 4.31 3.95 3.62
33.0 7.57 232 222 039 139 843 930 871 6.63 426 189 100 4.69 024 435 784
PV -54 275 512 8 8 2 7 8 1 6 185 6 5 5 817 7 5 9
                                     
11.9
143
NPV 2                                  
Under 2%
inflation                                    
Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Investment:                                    
Land -30                                  
- - -
Construction 20.4 30.6 10.2                              
Operations:                                    
12.2 12.2 12.2 12.2 12.2 12.2 12.2 12.2 12.2 12.2 12.2 12.2 12.2 12.2 12.2
Rentals       4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
Share of Retail 24.4 24.4 24.4 24.4 24.4 24.4 24.4 24.4 24.4 24.4 24.4 24.4 24.4 24.4 24.4
Sales       8 8 8 8 8 8 8 8 8 8 8 8 8 8 8
Operating and
maintenance - - - - - - - - - - - - - - - - - -
costs 2.04 4.08 4.08 10.2 10.2 10.2 10.2 10.2 10.2 10.2 10.2 10.2 10.2 10.2 10.2 10.2 10.2 10.2
Real estate - - - - - - - - - - - - - - - - - -
taxes 2.04 2.04 3.06 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08
                                     
cash flow - - - 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4 22.4
54.4 36.7 17.3 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
 8 2 4
Depreciation 0 0 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08
- - -
54.4 36.7 13.2 18.3 18.3 18.3 18.3 18.3 18.3 18.3 18.3 18.3 18.3 18.3 18.3 18.3 18.3 18.3
EBT 8 2 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6
6.42 6.42 6.42 6.42 6.42 6.42 6.42 6.42 6.42 6.42 6.42 6.42 6.42 6.42 6.42
Tax @ 35%       6 6 6 6 6 6 6 6 6 6 6 6 6 6 6
- - -
54.4 36.7 13.2 11.9 11.9 11.9 11.9 11.9 11.9 11.9 11.9 11.9 11.9 11.9 11.9 11.9 11.9 11.9
EAT 8 2 6 34 34 34 34 34 34 34 34 34 34 34 34 34 34 34
Add back: Depn     4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08
- -
Net annual cash 54.4 36.7 - 16.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0
flow 8 2 9.18 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14
                                     
0.91 0.84 0.77 0.70 0.64 0.59 0.54 0.50 0.46 0.42 0.38 0.35 0.32 0.29 0.27 0.25 0.23
PV F @ 9% 1 743 168 218 843 993 627 703 187 043 241 753 553 618 925 454 187 107
                                     
- - - 12.3 11.3 9.54 8.76 8.03 6.76 6.20 5.69 5.22 4.79 4.39 4.03 3.70
54.4 33.6 7.72 657 447 10.4 862 020 688 7.37 448 595 353 342 213 645 344 040
PV 8 881 662 5 2 08 5 6 7 329 7 1 3 5 3 2 2 6
                                     
12.7
526
NPV 1                                  
Retail sales 40%
below forecast                                    
Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Investment:                                    
Land -30                                  
Construction -20 -30 -10                              
Operations:                                    
Rentals       12 12 12 12 12 12 12 12 12 12 12 12 12 12 12
Share of Retail
Sales       14.4 14.4 14.4 14.4 14.4 14.4 14.4 14.4 14.4 14.4 14.4 14.4 14.4 14.4 14.4
Operating and
maintenance
costs -2 -4 -4 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10 -10
Real estate
taxes -2 -2 -3 -4 -4 -4 -4 -4 -4 -4 -4 -4 -4 -4 -4 -4 -4 -4
                                     
cash flow -54 -36 -17 12.4 12.4 12.4 12.4 12.4 12.4 12.4 12.4 12.4 12.4 12.4 12.4 12.4 12.4 12.4
Depreciation 0 0 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
EBT -54 -36 -13 8.4 8.4 8.4 8.4 8.4 8.4 8.4 8.4 8.4 8.4 8.4 8.4 8.4 8.4 8.4
Tax @ 35%       2.94 2.94 2.94 2.94 2.94 2.94 2.94 2.94 2.94 2.94 2.94 2.94 2.94 2.94 2.94
EAT -54 -36 -13 5.46 5.46 5.46 5.46 5.46 5.46 5.46 5.46 5.46 5.46 5.46 5.46 5.46 5.46 5.46
Add back: Depn     4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
Net annual cash
flow -54 -36 -9
9.46 9.46 9.46 9.46 9.46 9.46 9.46 9.46 9.46 9.46 9.46 9.46 9.46 9.46 9.46
                                     
0.91 0.84 0.77 0.70 0.64 0.59 0.54 0.50 0.46 0.42 0.38 0.35 0.32 0.29 0.27 0.25 0.23
PV F @ 9% 1 743 168 218 843 993 627 703 187 043 241 753 553 618 925 454 187 107
                                     
 - - 7.30 6.70 6.14 5.64 5.17 4.74 4.35 3.99 3.66 3.36 2.83 2.38 2.18
33.0 7.57 485 170 835 068 494 765 564 600 606 335 3.08 087 2.59 268 595
PV -54 275 512 6 2 1 9 4 5 7 6 1 8 565 2 713 8 2
                                     
-
30.4
NPV 211                                  
Under 10%
inflation                                    
Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Investment:                                    
Land -30                                  
Construction -22 -33 -11                              
Operations:                                    
Rentals       13.2 13.2 13.2 13.2 13.2 13.2 13.2 13.2 13.2 13.2 13.2 13.2 13.2 13.2 13.2
Share of Retail
Sales       26.4 26.4 26.4 26.4 26.4 26.4 26.4 26.4 26.4 26.4 26.4 26.4 26.4 26.4 26.4
Operating and
maintenance
costs -2.2 -4.4 -4.4 -11 -11 -11 -11 -11 -11 -11 -11 -11 -11 -11 -11 -11 -11 -11
Real estate
taxes -2.2 -2.2 -3.3 -4.4 -4.4 -4.4 -4.4 -4.4 -4.4 -4.4 -4.4 -4.4 -4.4 -4.4 -4.4 -4.4 -4.4 -4.4
                                     
- - -
cash flow 56.4 39.6 18.7 24.2 24.2 24.2 24.2 24.2 24.2 24.2 24.2 24.2 24.2 24.2 24.2 24.2 24.2 24.2
Depreciation 0 0 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4
EBT - - - 19.8 19.8 19.8 19.8 19.8 19.8 19.8 19.8 19.8 19.8 19.8 19.8 19.8 19.8 19.8
 56.4 39.6 14.3
Tax @ 35%       6.93 6.93 6.93 6.93 6.93 6.93 6.93 6.93 6.93 6.93 6.93 6.93 6.93 6.93 6.93
- - - 12.8 12.8 12.8 12.8 12.8 12.8 12.8 12.8 12.8 12.8 12.8 12.8 12.8 12.8 12.8
EAT 56.4 39.6 14.3 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7
Add back: Depn     4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4
Net annual cash - - 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2
flow 56.4 39.6 -9.9 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7
                                     
0.91 0.84 0.77 0.70 0.64 0.59 0.54 0.50 0.46 0.42 0.38 0.35 0.32 0.29 0.27 0.25 0.23
PV F @ 9% 1 743 168 218 843 993 627 703 187 043 241 753 553 618 925 454 187 107
                                     
- - 13.3 11.2 10.2 9.44 8.66 7.95 7.29 6.69 6.14 5.63 5.16 4.74 4.34 3.99
- 36.3 8.33 356 12.2 243 975 728 723 158 503 269 008 310 798 127 979 063
PV 56.4 303 263 1 345 2 4 1 1 8 5 2 5 5 6 2 1 4

Scenario analysis measures the expected benefit of a plan and identifies the possibility of danger in a given situation. It includes checking how
changes or errors in estimating variables affect the scenario. It may help control the variables to gather additional information to mitigate the
mistakes, and which variables they must closely track at the beginning of a project. Due to the concept of how risky your future project is to the
market, many threats are defined. If retail sales decrease and rental decrease occurs, this could damage the revenue forecast. Building delay may
affect the bottom line. Inflation may also cause a problem. These are the basic situations forwarded to Waldo County by Monday morning. It
will have variable measurements in a sensitivity analysis that combine negative projections and optimistic projections.
The 25% drop in retail revenues would reduce NPV's rental income to 6.02 million dollars and 20.98 dollars. When we consider the high
construction cost, 25% shifts to $28.76 million, and one year's delay is $30.47 million. A 10% inflation with $37.84 million has the least impact
on the NPV. The project also has appositive NPV with all risk variations. When negative and positive variables are misestimated, you are
probably in trouble. Sensitivity Analysis cannot be driven too far as the predicted positive and negative values of the overall project cash flow
cannot be achieved. In the sense of a 25 per cent overrun scenario for a total of $112.5 and development is delayed by one year. Zoning
modifications and environmental permits will be the cause. Retail sales should be increased to 28 million dollars and rents to 14.2 dollars.
However, both threats exist concurrently with NPV being negative at $37.74. This will not be possible to do.