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Amit Nigam - PGP26326

Paramjyothi Akula - PGP26356


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

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