- Using net present value calculations, determine which has a higher ROI
- Buying a Chevrolet Impala today for $30,000, putting $15,000 down and taking a six-year loan for the rest at 5%
or
- Leasing the Impala for 4 years at $329 a month. Since $4000 is due when the lease is signed, the rate will equal to 5%.
Show your work and explain your rationale.
- Buying a Chevrolet Impala today for $30,000, putting $15,000 down and taking a six-year loan for the rest at 5%
- Commit to buy a vacation home in the climate of your choice, rent the home out when you are not using it, or sign a five-year lease for the home for the two months a year you plan on using it.
- Another buy-or-lease alternative. You could buy the home for $300,000, putting 20% down and renting it out at $1400 a month. Which would make more sense? Buying or leasing the home? Explain your rationale.
- Lease your home for the next three years or sell it with the intent to return to the same geographic area after you complete a three-year expatriate assignment in the country of your choice.
- Given the facts above, should you lease the house or sell it? The current market value is approximately $320,000. Explain your rationale, and show your work.