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?