Question 1: When does it make sense to rent your home vs buying a home? Can you describe it in terms of NPV?
Question 2: If in some situations it makes financial sense for a consumer to lease a car, why does it make sense for a dealer to lease the car to the consumer?
Question 3: Much like many businesses, consumers are faced with buying or leasing their cars. Thinking about the lecture, the readings, and your own experiences, how should the decision be framed?
Question 4: The housing market has seen a recent rise in home appreciation. Many investors bought second homes. Outline the decision making process to determine if it makes sense to buy a second home and lease it. What are your basic assumptions? Do they hold for a 10 year time horizon?