1. Car Shield advertises an insurance policy for automobile repairs. They advertise on television and by direct mail. A letter they sent me follows. Your task: Evaluate the three options, Gold, Platinum, and Diamond for a 10, 20, and 25 year period at 5%/year interest (9 results). 1. What is the NPV of each option and duration combination? 2. If you were to invest the same amount in a separate bank account at 2%/year how many years would it take to match the NPVs in Part 1? 3. Go online and see if you can find the average cost of ownership over 15 years of a: Toyota Corolla Ford F 150 pickup truck Honda Civic 4. What is you conclusion about Car Shield? Select Your Protection Plan Select the plan that best fits your budget. Please call 1-800-774-9108. GOLD This vehicle service contract is great coverage for major and minor vehicle parts. It is the best level of coverage for those on a strict budget, yet still need the peace of mind of knowing major repairs will be covered. PLATINUM This vehicle service contract is comprehensive, yet still ideal for higher mileage vehicles that are a few years old. It protects your vehicle's engine. transmission, AC, electrical system, starter, water pump, fuel pump. & more. DIAMOND This vehicle service contract is similar to the manufacturer's new car warranty. It covers everything from power window motors to the transmission. It's the most complete coverage option that you can get, and offers the total peace of mind that you need. As low as $99 / Month As low as $79 / Month As low as $89 / Month 1. Car Shield advertises an insurance policy for automobile repairs. They advertise on television and by direct mail. A letter they sent me follows. Your task: Evaluate the three options, Gold, Platinum, and Diamond for a 10, 20, and 25 year period at 5%/year interest (9 results). 1. What is the NPV of each option and duration combination? 2. If you were to invest the same amount in a separate bank account at 2%/year how many years would it take to match the NPVs in Part 1? 3. Go online and see if you can find the average cost of ownership over 15 years of a: Toyota Corolla Ford F 150 pickup truck Honda Civic 4. What is you conclusion about Car Shield? Select Your Protection Plan Select the plan that best fits your budget. Please call 1-800-774-9108. GOLD This vehicle service contract is great coverage for major and minor vehicle parts. It is the best level of coverage for those on a strict budget, yet still need the peace of mind of knowing major repairs will be covered. PLATINUM This vehicle service contract is comprehensive, yet still ideal for higher mileage vehicles that are a few years old. It protects your vehicle's engine. transmission, AC, electrical system, starter, water pump, fuel pump. & more. DIAMOND This vehicle service contract is similar to the manufacturer's new car warranty. It covers everything from power window motors to the transmission. It's the most complete coverage option that you can get, and offers the total peace of mind that you need. As low as $99 / Month As low as $79 / Month As low as $89 / Month
