You are interested in getting a Honda Element. You have decided to look into leasing, to see how it compares with buying. In recent years, you have noticed that advertised lease payments are considerably lower than those advertised for financing a purchase. It always seemed as if you would be getting “more car for the money!”

In your research, you have found that a closed-end vehicle lease is an agreement in which you make equal monthly payments based on your estimated usage for a set period of time. Then you turn the vehicle back in to the leasing dealer. No equity, no ownership, no asset at the end! You also have the option of purchasing the vehicle at an agreed-on price.

Leasing terminology is different from purchasing, but they are related. The capitalized cost is the purchase price; the capitalized cost reduction is the down payment; the money factor is the interest rate; the residual value is the expected market price of the vehicle at the end of the lease. Use the advertisement below and the purchase vs. lease worksheet on page 488 to compare the total cost of each option. The residual value of the car is estimated to be $13,650. The lease has no termination fees or charges. If you decide to purchase, your bank requires a down payment of $3,800 and will finance the balance with a 10.25% APR loan for 36 months. The sales tax in your state is 6.5%, and the tag and title charges are $75. The opportunity cost is the interest your down payment could have earned if you didn’t purchase the vehicle. Currently, your money earns 4.5% in a savings account.

a. What is the total purchase price of the vehicle, including tax, tag, and title?

b. How much are the monthly payments on the loan?

c. What is the total cost of purchasing?

d. What is the total cost of leasing?

e. In your own words, explain which of these financing choices is a better deal and why.

f. (Optional) Choose an ad from your local newspaper for a lease offer on a vehicle you would like to have. Gather the necessary information needed to complete a purchase vs. lease worksheet. Use local dealers and banks to find the information you need, or do some research on the Internet. Report your findings and conclusions to the class.

 

Debate whether alien life forms exist and whether we should be trying to contact them.

1. Discuss the moral and economic implications involved in the "Occupy Wall Street" movement2. Analyze each of the implications identified above against the utilitarian, Kantian, and virtue ethics to determine which theory best applies to the movement. Support your position with examples and evidence.3. Determine who is responsible for income inequality and wealth distribution in the U.S. In your analysis, make sure to include if this is something that happened suddenly or if it built up over time. Explain your rationale4. Suggest an equitable outcome from the movement that would beappropriatefor our capitalistic society.5. Predictwhetherthe movement will continue, fad away, or turn into something else. Provide a rationale with your response.Use at least 3 quality references: Note Wikipedia and other Websites do not quality as academic resources.Be typed double space, using Times New Roman size 12 citations and references must follow APA specific format

I have 2 questions that need answered in my Finance Class.1. It is your decision whether to extend a large amount of credit to Comic Concrete in order to fill its large order that they have placed with your firm. Your ratio analysis of Comic Concrete reveals that the firm’s financial ratios have been improving and that they now meet or exceed all industry standards. The market price of both their debt and equity, however, has fallen substantially in recent months. What would you do?2. The firm’s accountant suggests that by taking less depreciation, the firm will be able to increase its net income and therefore have sufficient earnings that the firm will not need to borrow money to fund its expansion. You are asked to comment on the accuracy of the accountant’s suggestion.