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If you are using Excel to perform your computations, all the tables and charts must be copied from Excel to your PDF file. We do
If you are using Excel to perform your computations, all the tables and charts must be copied from Excel to your PDF file. We do not accept any Excel file. You must upload your homework to Blackboard by the deadline. Do not leave this homework to the last day. It requires significant amount of time from you. You should start working on that as soon as possible. All your explanations must be in complete sentences. You own a 2015 Honda Accord LX 4dr Sedan (2.4L 4cyl CVT). You purchased this car on January 1st, 2015. You are now considering whether to replace this car with a new 2020 Honda Accord EX-L 4dr Sedan (2.0 4cyl Turbo 10A) on January 1st, 2021. You have two options: buying the new car (you pay for the whole car-no car loans) or leasing the new car (you pay monthly for the car). The lease option will be a 3-year term. Consider a three-year planning horizon. Perform your analysis for the values of MARR between 1% to 10% (increment of 0.5%), and decide about the best option (keeping the current car, buying a new one, leasing a new one) for each MARR value. Show your decisions in a table format. The table should specify the best decision for each value of MARR. Also, all computational steps must be shown outside the table with clear explanations. Use what you learned in Chapter 7 to solve this problem. You can find almost all the necessary data for this problem from www.edmunds.com. If you cannot find a specific data item from this site, you may use other websites to find the item. In that case you must add that website address to your report and show how you found the specific data item from that website. For pricing and all other data items, you must use the averages reported on www.edmunds.com. Do not use special deals or discounted prices that you may find from other places. You must consider the following data items: price of the new car, leasing price, full coverage insurance (you should use full coverage option only for all options), salvage value of the new car after three years, selling price of the current car, fuel cost, maintenance cost, repair cost, and taxes and fees for purchasing a new car or leasing a new car. Your unit of time in this problem is one year. You will be driving your car in Illinois. For any data item that requires certain assumptions, write down your assumptions in the report. (Ctrl) If you are using Excel to perform your computations, all the tables and charts must be copied from Excel to your PDF file. We do not accept any Excel file. You must upload your homework to Blackboard by the deadline. Do not leave this homework to the last day. It requires significant amount of time from you. You should start working on that as soon as possible. All your explanations must be in complete sentences. You own a 2015 Honda Accord LX 4dr Sedan (2.4L 4cyl CVT). You purchased this car on January 1st, 2015. You are now considering whether to replace this car with a new 2020 Honda Accord EX-L 4dr Sedan (2.0 4cyl Turbo 10A) on January 1st, 2021. You have two options: buying the new car (you pay for the whole car-no car loans) or leasing the new car (you pay monthly for the car). The lease option will be a 3-year term. Consider a three-year planning horizon. Perform your analysis for the values of MARR between 1% to 10% (increment of 0.5%), and decide about the best option (keeping the current car, buying a new one, leasing a new one) for each MARR value. Show your decisions in a table format. The table should specify the best decision for each value of MARR. Also, all computational steps must be shown outside the table with clear explanations. Use what you learned in Chapter 7 to solve this problem. You can find almost all the necessary data for this problem from www.edmunds.com. If you cannot find a specific data item from this site, you may use other websites to find the item. In that case you must add that website address to your report and show how you found the specific data item from that website. For pricing and all other data items, you must use the averages reported on www.edmunds.com. Do not use special deals or discounted prices that you may find from other places. You must consider the following data items: price of the new car, leasing price, full coverage insurance (you should use full coverage option only for all options), salvage value of the new car after three years, selling price of the current car, fuel cost, maintenance cost, repair cost, and taxes and fees for purchasing a new car or leasing a new car. Your unit of time in this problem is one year. You will be driving your car in Illinois. For any data item that requires certain assumptions, write down your assumptions in the report. (Ctrl)
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