You will perform an appropriate rigorous evaluation and analysis and report conclusion regarding the following:
1) You have $300,000 and want to purchase a car with engine at least 24 valves, V6, and a high concern on safety and gas consumption issues. You also need to invest your remaining money while providing yourself with 7 years of transportation, and maximizing your return over the same period.
2) You will gather related data and:
a. Identify a pool of candidate car.(ie, possible types of cars to purchase)
b. Analyze and evaluate the pool according to recognized procedures and established criteria.
c. Establish criteria set for final choice.
d. Reduce original pool to five candidates
e. Select and support one vehicle. Use decision then determine whether to:
– Buy the unit outright and place X% down and borrow the remainder.
– Lease after paying a flat amount.
– Lease with no front money, other than regular expenses.
– Any other options.
3) You will then decide how to invest the remaining amount from the $300,000 issued. You may split your investment of the remaining amount between stocks, mutual funds, a regular bank savings account, and/or a money market account in any proportions you choose and analyze the rate of return of each selected alternative.
4) Finally, you will provide a formal report with the following components:
a. Title page
b. Table of contents
c. Executive Summary: what car, what method, total cost, investment results, possible investment alternatives and investment chosen.
d. Your analysis with tables should present the following:
– Vehicle Alternatives with feature criteria and with price for each financial method. (lease, buy, loan)
– Decision choice of the remaining five cars
– Decision analysis for each financial method.
– Table highlighting the cost to each financial method.
– Decision analysis for available investment method.
– Table highlighting the returns for each method.