In both your professional and personal life, you will make a variety of decisions. You should consider the financial and nonfinancial aspects while making decisions.
To evaluate scenarios, you will also use some tools such as net present value (NPV) and return on investment (ROI) that you have discussed so far.
In this assignment, you will evaluate the financial aspects of making decisions.
Tasks:
Investigate any two of the following financial decisions:
•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.
For the two options that you selected (and using the figures given above for those options), investigate the realistic assumptions for your location and include the information you found in the analysis. Create a one page paper. Including the following:
•Initial information/approach: purchase price, rebate, down payment, amount to finance, etc.
•Payments formulas and calculations
•Explanation of the financial factors that you are employing in the selected decisions
•Conclusion containing the "best answer" for your personal life on the basis of these financial factors
•Probability of following the recommended "best answer" (assuming that these are the only decision options)