The used car price, i.e. The price the car fetches in the market at the end of lease term is assumed to be $45,000 for all the leased vehicles. Calculation of different used car price for each model owned by National Leasing Inc. Will entail creating new spreadsheet for each model, making the modelling exercise way too tedious.
The used car price, i.e. The price the car fetches in the market at the end of lease term is assumed to be $45,000 for all the leased vehicles. Calculation of different used car price for each model owned by National Leasing Inc. Will entail creating new spreadsheet for each model, making the modelling exercise way too tedious.
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The used car price, i.e. The price the car fetches in the market at the end of lease term is assumed to be $45,000 for all the leased vehicles. Calculation of different used car price for each model owned by National Leasing Inc. Will entail creating new spreadsheet for each model, making the modelling exercise way too tedious.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as TXT, PDF, TXT or read online from Scribd
Sriram S - PGP26370 Vishnuvardhan J - PGP26386 Abhishek Mishra - FPM11007 Issac Varghese - FPM11004 Assumptions and Limitations Assumption: The used car price, i.e. the price the car fetches in the market at the end of l ease term is assumed to be $45,000 for all the leased vehicles. Justification: Calculation of different used car price for each model owned by National Leasing Inc. will entail creating new spreadsheet for each model, making the modelling exercise way too tedious. Limitation: The model ignores the consumer behaviour of keeping or returning the vehicle at the end of the lease period. Justification: Considering the fact that not ignoring the customer behaviour will involve the f ollowing two assumptions: a) The market price vis-a-vis the residual value of th e vehicle b) Chances of consumer keeping or returning the vehicle irrespective o f the prevailing market price