Living Spaces

A Group 8 PresentationKristoffer Carino Peter Masangcay,

Dean Tablang, Malena Walker

Scenarios• You are a college freshman planning out

your college career. Your tuition and books are covered but you have to take care of your own housing. A loan will be needed, so you compare the alternatives using annual worth analysis.

Criteria• Actual Housing

• Transportation

• Work

Housing• Apartments

– 4 total people, so $287.5 per month. But a $125 annual increase in rent

– $175 monthly for food– Graduate in 4 years

• Dorms– $3775.50 annual – Meal plan included– Graduate in 4 years

Transportation• Apartments

– $5000 car, $30/month maintenance, 30mpg– Initial gas cost $2.50– Salvage value of $1500

• Dorms– Bus/Train pass $58, with $2 increase every

year

Work• In either case, 50% of your salary will go

to help pay for your housing.

• Apartments– Off campus job $9.00/hour, $100 raise every

year, 8 hour work week

• Dorms– On campus job $8.00/hour, $150 raise every

6 months, 10 hour work week

Annual CostsDorm Annual Costs Apartment Annual costs

Dorm Costs $3828.05 Rent $3687.75

Transp. $3019.80

Car Payments +Maintain. +Fuel $2,473.74

Food $0 Food $2195.10

Income ($1,182.65) Income ($1967.10)

total $5660.20 total $6389.49

Annual Living Costs

-5660.204

-6389.49

-6600

-6400

-6200

-6000

-5800

-5600

-5400

-5200

1

EUAW

Co

st

($)

EUAW For Dorms

EUAW For Apartments

Sensitivity Analysis• In the previous case the dorm costs were about

$1500 less than living in an apartment. For this next case we modify the living situation to get a lower EUAC for apartment living.

• For our scenario– Lower Rent Apartment– Lower Grocery Bill– Car given to you by parents– Slightly Higher Fuel Consumption– Higher Maintenance Costs– No Income accounted for.

EUAC For Scenario 3

-6842.854

-6373.54

-6900

-6800

-6700

-6600

-6500

-6400

-6300

-6200

-6100

1

EUAC

Co

st

($)

EUAC For Dorm

EUAC For Apartments

Most Cost Effective Dorm Annual Costs Apartment Annual costs

Dorm Costs $3828.05 Rent $3687.75

Transp. $3019.80

Car Payments +Maintain. +Fuel $2,473.74

Food $0 Food $2195.10

Total $6301.79

Helpful Websites• www.yahoolocal.com

• www.stp.uh.edu

• www.csupomona.edu

• www.consumerguide.com