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 Landev, an Economic Model for Land Development

Sensitivity Testing

LANDEV provides for easy sensitivity testing in the SHELL for the following parameters.

                                                                         
LAND USE:     Alternative "Total Units" selection from      :MV[67]
SALES PACE:   Sales pace expressed as total units per period      :MV[ 2]
SALES PRICE:  Price adjustment all products all periods           :MV[ 4]
ESCALATION:   Rate/year to increase revenues                      :MV[ 6]
ESCALATION:   Rate/year to increase costs (& revenues if MV[6]=0) :MV[ 7]
COSTS:        Adjust all costs all periods for 1 account #(MV[49]):MV[50]
              Account # to adjust for sensitivity testing (MV[50]):MV[49]
INTEREST RATE:Interest rate on line of credit financing           :MV[11]
PARTICIPATION:Share of project to give to partner (id# in MV[63]) :MV[62]
              Entity id# for partner receiving MV[62] % of profits:MV[63]
Adjustments of these parameters for sensitivity testing in the SHELL only effects the inputs. Thus simpler models, generally, lend themselves well to sensitivity testing while sensitivity testing in complicated models requires more thought and care.

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