Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. Your dream car: Evaluate 3 brands of luxury cars (BMW, Lexus, Mercedes Benz) and determine the best method to procure: cash, continuous rent, lease
1. Your dream car: Evaluate 3 brands of luxury cars (BMW, Lexus, Mercedes Benz) and determine the best method to procure: cash, continuous rent, lease through dealer, auto-finance through bank, personal loan from bank. You are going to have a new/used car after graduation until you can procure your dream car. 1- [20%] Considering all possible options (creative ideas = additional points) and limiting assumptions to min. 2- [30%] Estimating all cashflows (capital, expenses, savings, salvage value, opportunity cost...) with references 3- [30%] Applying the course material to estimate and calculate (backup slides might be required) a. Project parameters and its references (Ch3: Interest, Ch4: inflation, Ch9: depreciation + tax) b. Project evaluation criteria (Ch5: NPW + discounted payback period, Ch6: cost/profit per unit, Ch7: IRR) C. Future considerations (Ch11: uncertainty, Ch12: replacement; not to marriage topic obviously ) 4- [10%] Use AHP method, or similar tools, to compare alternatives (add financial criteria: NPV, AEC, payback ...) 1. Your dream car: Evaluate 3 brands of luxury cars (BMW, Lexus, Mercedes Benz) and determine the best method to procure: cash, continuous rent, lease through dealer, auto-finance through bank, personal loan from bank. You are going to have a new/used car after graduation until you can procure your dream car. 1- [20%] Considering all possible options (creative ideas = additional points) and limiting assumptions to min. 2- [30%] Estimating all cashflows (capital, expenses, savings, salvage value, opportunity cost...) with references 3- [30%] Applying the course material to estimate and calculate (backup slides might be required) a. Project parameters and its references (Ch3: Interest, Ch4: inflation, Ch9: depreciation + tax) b. Project evaluation criteria (Ch5: NPW + discounted payback period, Ch6: cost/profit per unit, Ch7: IRR) C. Future considerations (Ch11: uncertainty, Ch12: replacement; not to marriage topic obviously ) 4- [10%] Use AHP method, or similar tools, to compare alternatives (add financial criteria: NPV, AEC, payback ...)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started