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work on unemployment economic effects
INDM 5240 GROUP TWO: A COMPRHENSIVE INVESTIGATIVE REVIEW ON PURCHASING A VEHICLE AND INVESTING THE REMAINING FUNDS
TABLE OF CONTENTS
Pages
ABSTRACT: i
CONTENTS: ii
CHAPTER I: VEHICLE ANALYSIS X-X
CHAPTER II: WHAT CAR / WHAT METHOD X-X
CHAPTER III: INVESTMENT ANALYSIS / RESULTS X-X
CHAPTER IV: X-X
CHAPTER V X-X
CHAPTER VI: X-X
REFERENCES: X-X
This is the actual question – below work done by my group members so you have read the question and the below work done based on that and do the abstract of 250 words and work on unemployment economic effects, I need analysis tables built and defined stocks to invest into with the 10k.
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.
CHAPTER I: VEHICLE ANALYSIS
Our Decision choices for the five car choices are all 2020 model years. They include: Audi S8, BMW M850i AWD Gran Coupe, Ford Raptor, Jeep Grand Cherokee TrackHawk, and Toyota LandCruiser. All the selected vehicles meet and exceed the mandatory established criteria of: Minimum of 24 Valves, V6, with high concerns for safety ratings and gas mileage. Buying, Leasing, or taking out a loan was a decision that we mapped out carefully. Our overall project goal will be a success if we ensure that we smartly provide seven years of reliable transportation while efficiently and effectively investing the remainder of the funds that we have been allotted. Our project vision in Group 2 is to exceed the project requirements and maximize our remaining funds in a usable and sustainable manner. We also chose vehicles that safe, reliable, and fun to drive.
When analyzing whether to buy the vehicle outright, finance the vehicle, or pursue a lease option we were left with many factors to prioritize and come to an efficient and effective consensus on. Out of the remaining five vehicles when you look at the buy/finance option all the cars have a monthly payment over $1,000 except for the Ford Raptor with a monthly payment of $802.57. These are considerable car payments that may equal mortgages in some parts of the country but choosing, driving, and maintaining these vehicles comes with a price and we are allotted the funds in this scenario.
From our analysis there is little variation in from an economic standpoint when it comes to buying the vehicle outright or financing to own the vehicle. With the recent Coronavirus pandemic (COVID-19) there are favorable financing options especially when the automotive market. We have chosen to take capitalize off of zero percent annual percentage rate financing for 72 months. So between the two payment options of buying the car outright for the negotiated price or financing it for 72 months there is no difference. You are either choosing to front the full amount of spread it out over six years any pay in installments in the form of monthly payments. In common circumstances most car buys will elect to some money down on a new vehicle purchase depending on their financial situation and the specific amount and rate that they are looking to finance at. In this scenario with an interest rate of 0% annual percentage rate, putting money down doesn’t really gain the buyer anything from an economical perspective.
Leasing a vehicle has advantages and disadvantages that mush be carefully evaluated….
CHAPTER II: WHAT CAR / WHAT METHOD
Group Two will be taking out a loan for a 2020 BMW M850i Gran Coupe (AWD) with an MSRP of $109, 895. We will be pursuing a loan for $105,895 with no money down for 0% APR interest for a period of 72 months. This Will structure our monthly payments at $1,526. 32 for 6 years (72 months).
CHAPTER III: INVESTMENT ANALYSIS / RESULTS
High-Yield Savings Accounts are commonly used for storing money for near term investment goals. There are many options for High-Yield Savings Account banking institutions. Ally Bank is currently structuring High-Yield Savings Accounts with an Annual Percentage Yield (APY) of 1.5%. Using $10,000 dollars as a deposit example of the estimated earnings with a High Yield Savings Account at 1.50% APY would be $150 in 12-months. This number grows exponentially as we deposit more money. For example: depositing $100,000 of the $194,105 would yield $1500 in 12 months (Loudenback, T. 2019).
We have chosen to invest our money with the Online Bank Ally. Ally is FDIC insured up to $250,000. In this scenario we will be investing $184,105 evenly into Ally Bank between a High-Yield Savings and Money Market Account. A set amount of $10,000 dollars will be allocated to purchase diversified stocks to diversify out remaining investment and to allow our remaining funds to have the maximum potential growth and rate of return.
Whenever you place your hard earned money into a financial institution it is important to be absolutely certain that you can access your funds when you need to. High-Yield Savings Accounts earn substantially more interest than a traditional savings account and you can still access your funds when you need to. Ally Bank allows six withdrawals per statement cycle out of this type of savings account. A user interface option you can use through the online bank Ally is called “Buckets.” You can compartmentalize your savings and interest earned into “buckets” or different prioritized sub categories that you want to focus your savings into. This is a very user friendly dashboard interface to organize your savings and work towards specific goals. (What are Ally Banks, 2019).
References
Car Lease Calculator – Simply the Best Auto Lease Payment Calculator. (n.d.). Retrieved April
12, 2020, from https://www.edmunds.com/calculators/car-lease.html
Capparella, J. (2020, April 1). 2020 Audi S8: Features and Specs. Retrieved April 11, 2020, from
Clarke, W. (2019, November 12). 2020 Toyota Land Cruiser: Features and Specs. Retrieved
April 12, 2020, from https://www.caranddriver.com/toyota/land-cruiser/specs
2020 Ford F-150 Raptor Review, Pricing, and Specs. (2020, April 1). Retrieved April 11, 2020,
from https://www.caranddriver.com/ford/f-150-raptor
Kumok, Z. (2020, March 9). After I opened my first high-yield savings account, I loved it so
much I opened 10 more. Retrieved April 9, 2020, from
accounts-with-ally-bank
Loudenback, T. (2019, July 9). A high-yield savings account helps money earn up to 200 times
more, and there are 5 times using one is a no-brainer. Retrieved April 9, 2020, from
savings
Money Market Accounts vs. Savings Accounts. (2019, August 20). Retrieved April 10, 2020,
from https://www.ally.com/do-it-right/banking/money-market-account-vs-savings-
account/?otm_medium=onespot&otm_source=onsite&otm_content=do-it-right-article-
page:related-articles-onespot-version&otm_click_id=bfdea0f3-1745-475c-b0d9-
a913a8ca11f9
Monthly Car Payment Calculator. (n.d.). Retrieved April 11, 2020, from
Simari, M. (2020, April 1). 2020 BMW 8-series Gran Coupe Review, Pricing, and Specs.
Retrieved April 4, 2020, from https://www.caranddriver.com/bmw/8-series-gran-coupe
Stafford, E. (2019, May 14). 2020 Jeep Grand Cherokee Trackhawk: Features and Specs.
Retrieved April 12, 2020, from https://www.caranddriver.com/jeep/grand-cherokee-
trackhawk/specs
What are Ally Bank’s Savings Buckets and Boosters? (2020, February 4). Retrieved April 11,
2020, from https://www.ally.com/do-it-right/banking/what-are-ally-banks-savings-
buckets-and-boosters/?otm_medium=onespot&otm_source=onsite&otm_content=do-it-
right-article-page:related-articles-onespot-version&otm_click_id=421506c9-a1f7-
463d-af2f-44995a956b0d
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