For this assignment, you will be reading the case 'Time Value of Money: The Buy Versus Rent Decision', research relevant facts, perform analysis, and document your findings, analysis, and recommendation in a written report for Rebecca Young.

This assignment carries 20% of the grade.

For the assignment, we will be using the case: 'Time Value of Money: The Buy Versus Rent Decision'

You can purchase the case, search (9B14N024) ($4.40 digital download) at https://www.iveycases.com.

Update: Instead of 4% quoted annual rate in page 2 line 4 of the case, we will use 2.5% APR semi-annual compounding.

Report Submission Instruction:

Maximum 4 pages excluding Reference/Appendix. You may consider using Refernce/Appendix section to include your research references, calculations, relevant graphs, charts, illustrations, and tables, and embed excel sheet file if you are using it to analyse.

Report due date and time: 4 Aug 2021 23:59 Hour Pacific Standard Time

Report must be submitted in Week 4 Turn-it-in link "Assignment 1 Due 4 Aug -Submit Here'. Submission by email will not be accepted.

A separate link 'Assignment 2 - Submit Excel File here (if any)' will be provided if you want to submit your excel file, if any available. Report submission by email will not be accepted.

Please include the statement with your signature in your paper: "I agree that the work in this assignment is my own work and that I have given credit to all sources of information used in my assignment by including citations and references in the APA format. I acknowledge that I am expected to exercise the utmost academic integrity in all work submitted for this course. SIGNATURE: Your name"

Report Expectation:

Your report should cover 3 main sections. You may follow the pointers below or decide your own approach where appropriate.

1.Findings and Assumptions

Facts from the case, expectation of future real estate prices (rent/buy), cost of borrowing, opportunity costs, cost of buying/selling, economy, etc.

The case was prepared in 2015. What about current situation in Toronto? Vancouver?

Describe your assumptions, if any.

2.Analysis

Calculation of monthly mortgage payment, outstanding mortgage balance

Cost/Payments to be considered in buy decision vs. rent decision

Scenarios analysis (Condo prices, interest rates, etc.)

Other factors such as qualitative benefits and costs

3.Recommendation

What recommendation(s) would you suggest to Rebecca Young and why? What would be Young's

next course of action?