1. Living Spaces A Group 8 Presentation Kristoffer Carino Peter Masangcay, Dean Tablang, Malena Walker

2. 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.

3. Criteria Actual Housing Transportation Work

4. 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

5. 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

6. 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

7. Annual Costs Dorm Annual CostsApartment Annual costs Dorm Costs$3828.05Rent$3687.75 Transp.$3019.80 Car Payments +Maintain. +Fuel$2,473.74 Food$0Food$2195.10 Income($1,182.65)Income($1967.10) total$5660.20total$6389.49

9. 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.

11. Most Cost Effective Dorm Annual CostsApartment Annual costs Dorm Costs$3828.05Rent$3687.75 Transp.$3019.80 Car Payments +Maintain. +Fuel$2,473.74 Food$0Food$2195.10 Total$6301.79

12. Helpful Websites www.yahoolocal.com www.stp.uh.edu www.csupomona.edu www.consumerguide.com