SNHU Time Value of Money The Buy Versus Rent Decision Case Study

User Generated

oznl1822

Business Finance

Southern New Hampshire University

Question Description

I'm working on a management discussion question and need an explanation and answer to help me learn.

Read the HBR case study Time Value of Money: The Buy Versus Rent Decision (Attached) and calculate the best route for the graduate’s housing situation, developing your understanding of time value of money (TVM) concepts and calculations. Describe your assumptions, methodology, and results in your discussion narrative, and attach a simple spreadsheet supporting your analysis. 

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Explanation & Answer

View attached explanation and answer. Let me know if you have any questions.

Buy
$600.000
Month
Deposit
Local Deed Transfer
Provincial
tax deed
Other
transfer
coststaxPrincipal +Maintenance
Interest on mortgage
Total
0 $120.000,0
$9.000,0
$9.000,0
$2.000,0
600
0 $140.600,0

Mortgage Interest
Monthly mortgage interest repayment
Opportunity cost/month for money on downpayment
Principal repayment per month
Savings in rent
Monthly condo fees
Monthly property taxes
Total Monthly repayments
Total cost
Selling options
a Price r...

angnfunoenval (8902)
Rice University

Anonymous
Really great stuff, couldn't ask for more.

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