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<br /> City of Fargo, North Dakota 711 10th Avenue North “But-for” Report|5 <br />Sensitivity Scenario 3 – Combination of Project Costs and Rental Rates The final scenario looks at both a reduction of project costs and an increase in rental rates. The analysis showed that project costs would have to be reduced by $138,499 or 4.28% and rental rates would have to increase by 4.20%. In order to obtain a higher IRR of 10% without assistance, project costs would have to be reduced by $255,999 or 7.91% and rental rates would have to increase by 7.80%. Both of these options <br />occurring is unlikely, but it is possible so it should be considered. The above scenarios show the circumstances in which the project would become viable without public assistance. Based on the information provided PFM’s analysis demonstrates that the project as currently anticipated is unlikely to occur “but-for” the public assistance.