Compare the results of pw-fw and aw analysis

Reference no: EM132209098

Question: Need to calculate PW , FW , AW

You have been sent by your company to Kuwait to work on a project for 4 years and you need a car. You have the choice between buying one and leasing one. After some research you find out the following:

If you decide to buy the car, it would cost you AED. 200,000 and after four years you could sell it for AED 60,000. You would have to do a major service after 2 years costing AED. 8,000 and minor services at the end of every year from year 1 to 3 year for AED 4,000.

If you decide to lease the car, you would have to pay AED 30,000 per year. You don't need to pay for services since the leasing company will take care of that.

a) Assuming an MARR of 10% perform an evaluation and decide if you should lease or buy the car by using PW, FW and AW analysis.

b) Compare the results of PW, FW and AW analysis.

c) Solve the same problem using spreadsheet functions in Excel.

Reference no: EM132209098

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