Date of Publication :7th September 2015

Abstract: Residential apartment scheme is being adopted in India by project promoters. It is essential to perform feasibility study of any project before commencement of it. During the construction period many factors may affect of project cash flow, those factors can be identified by risk assessment and known as ‘Critical factors’. Considering these critical factors and their combinations will show a possible situations, which may occur during the construction. After analyzing the Internal Rate of Return (IRR) of each possible situation, we can compare this value of IRR with cost of capital of company; and able to determine the practical feasibility of residential project for each situation. For the feasibility of project, each possible situation must have greater value of IRR as compare to Cost of capital of company. Only feasible projects are beneficial for a company. The literature shows how sensitivity analysis can contribute to improve decision-making, but little can be found about the advantages of exploring model sensitivity visually to aid the decision maker. Ultimately, the goal of this work is to develop effective interactive visualization techniques to assist people who are using models for decision making but who need to explore the often complex relationships between the values of model variables and the model output. Hence, feasibility study is essential before commencement of it. After preparing a sensitivity model of residential project, this model can be implementing to other residential projects.

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