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Assume that you are about to graduate. Your job search was successful, and you have hired on as a financial analyst. Your starting salary will
Assume that you are about to graduate. Your job search was successful, and you have hired on as a financial analyst. Your starting salary will be Kyear and you will start your new job a month after you graduate.
To get ahead, you have decided to keep your part time gig at a wellknown barrestaurant You intend to replace your existing car with a new one and expect that the money earned from this part time gig will cover the lease on a Mini Door, made by BMW You hope to sell your existing car for $ and use the money as a downpayment on the lease. The part time gig pays minimum wage, and averages around hoursweek
The Mini Door will be a Mini Cooper Premier ; Island Blue Metallic, White Roof and Mirror Caps, White Bonnet Stripes, Revolite Spoke Wheel Package, Carbon Black Punch Leatherette, Speed Double Clutch Transmission, with Roof Rails.
The Price Car Configurator assumes a month lease, K kmyear and zero downpayment. You intend to put up the sales proceeds of the old car as a downpayment and increase milage to K kmyear
The Price Car Configurator assumes an month loan, at and zero downpayment. You intend to put up the sales proceeds of the old car as a downpayment and reduce the loan term to months.
Questions:
What is the impact on the lease payment, if the downpayment and mileage extension to K kmyear is added? What is the impact on the biweekly loan payment, if the downpayment and term reduction is added?
What is the future value of this Mini Cooper Premier at the end of the month lease? Build a table to prove that the Price Car Configurator payment on the month lease is accurate.
If the resale value of this Mini Cooper Premier at the end of the month loan term was the same as the loan future value, would you get your original down payment back? Would this still be the case if inflation were increasing the value of your downpayment at per year during the years you were driving this Mini Cooper Premier
Assume you have a tax rate of How many hours per week would you need to work at this parttime job in order to pay the monthly cost of this Mini Cooper Premier on a year lease, with a $ down payment, and K kmyear Were you to change gigs and earn an additional in tips, would that change your decision?
Name two other factors that might influence your decision, and why.
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