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    Aiqa Ali
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    This document contains 7 assignment questions related to analyzing the financial decisions of buying a home versus renting. The questions ask the student to calculate the monthly mortgage payment, initial cash outflows of buying, present value of cash outflows over 10 years, additional costs of buying over renting for the first 3 months, outstanding principal after 10 years, and net gain or loss of buying vs. renting under different scenarios. It also asks for qualitative considerations. The student is instructed to submit their answers by September 24th, 2018 and will lose up to 5 marks for plagiarism.

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    This document contains 7 assignment questions related to analyzing the financial decisions of buying a home versus renting. The questions ask the student to calculate the monthly mortgage payment, initial cash outflows of buying, present value of cash outflows over 10 years, additional costs of buying over renting for the first 3 months, outstanding principal after 10 years, and net gain or loss of buying vs. renting under different scenarios. It also asks for qualitative considerations. The student is instructed to submit their answers by September 24th, 2018 and will lose up to 5 marks for plagiarism.

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    © All Rights Reserved
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    8 views1 page

    Case Questions

    Uploaded by

    Aiqa Ali
    This document contains 7 assignment questions related to analyzing the financial decisions of buying a home versus renting. The questions ask the student to calculate the monthly mortgage payment, initial cash outflows of buying, present value of cash outflows over 10 years, additional costs of buying over renting for the first 3 months, outstanding principal after 10 years, and net gain or loss of buying vs. renting under different scenarios. It also asks for qualitative considerations. The student is instructed to submit their answers by September 24th, 2018 and will lose up to 5 marks for plagiarism.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    IFCI: Turnaround an Ailing Financial Institution

    Assignment Questions

    1. What is the required monthly mortgage payment


    2. What are the initial cash outflows of the buy decision
    3. What is the present value of all cash outflows of the buy decision from month 0 to month
    120?
    4. Compare the relevant monthly cash outflow of the buy decision and rent decision from
    month 0 to month 3, assuming rent stays constant. What are the additional payments
    required to buy versus rent?
    5. What is the principal outstanding on the mortgage at the end of 10 years ?
    6. Compute the net gain or loss of the buy versus rent decision after 10 years under the four
    scenarios
    7. What are some qualitative considerations

    Submission Date: 24th September, 2018


    Word Processed
    Absolute -5 Marks on Plagiarism

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