Evaluate a major financial decision like buying a house vs. renting an apartment. For example the cost of the house is $200,000. The cost to rent per month is $1,200.

• Determine cash flows (include all relevant expenses/costs, i.e. down payment, interest rate of 3%, 30 year mortgage, home owners insurance, taxes, etc.)
• List and explain assumptions
• Compute IRR, NPV, Payback, Discounted Payback to make decision
• Conclusion: What decision did you make and why?