Living Spaces

1. Living Spaces A Group 8 PresentationKristoffer 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

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

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