Posted: August 28th, 2022

AEM 4620: Advanced Financial Modeling and Analysis

AEM 4620: Advanced Financial Modeling and Analysis
Case 1 – Time Worth of Cash: The Purchase versus Lease Resolution
(13 factors whole)
1. (zero.5 pts) Decide the required month-to-month funds for the mortgage.
2. (zero.5 pts) Decide the “alternative” prices, on a month-to-month foundation, of utilizing the required funds for
closing (i.e., down cost plus all closing prices), quite than leaving these funds invested and
incomes the month-to-month efficient fee (assumed to be equal to the mortgage fee).
three. (zero.5 pts) Decide the extra month-to-month funds required to purchase the condominium
in comparison with renting (together with alternative prices).
four. (1.5 pts) Decide the principal excellent on the mortgage after:
o Two years
o 5 years
o Ten years
5. Decide the “internet” future achieve or loss after two, 5, and ten years underneath the next
situations:
o (2 pts) The condominium value stays unchanged.
o (2 pts) The condominium value drops 10% over the following two years, then will increase again to its
buy value by the top of 5 years, then will increase by a complete of 10% from the
authentic buy value by the top of 10 years.
o (2 pts) The condominium value will increase yearly by the annual fee of inflation of two% per yr
over the following 10 years.
o (2 pts) The condominium value will increase yearly by an annual fee of 5% per yr over the
subsequent 10 years.
6. (2 pts) As Rebecca Yong, what resolution would you make? Describe any qualitative
concerns that would issue into your resolution.
AEM 4620: Advanced Financial Modeling and Analysis
Case 1 – Time Worth of Cash: The Purchase versus Lease Resolution
(13 factors whole)

Order | Check Discount

Tags: AEM 4620: Advanced Financial Modeling and Analysis