Project grading rubric24 (2)
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Georgia Gwinnett College *
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Course
3000
Subject
Finance
Date
Apr 3, 2024
Type
docx
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1
Uploaded by HighnessScorpionPerson2551
FINA 3000 Project Grading Rubric
Objectives
Use internet information to search for safety and price information to get the “best deal” for both a new vehicle and trade-in vehicle.
Based on the current interest rates and the term of the new car loan, calculate the car payments you need to make every month (an application of the present value of annuity problems).
Instructions Please see
indtructionsproj2 for more detailed instruction on this project. Steps
Description
Points
Step 1
Vehicle Name and Why It Was Chosen: for the purpose of this project, you may choose any NEW
vehicle that you wish to purchase. Choose the newest available vehicle for your model for this project.
10 points
Step 2
Car Buying Process Summary: Read the article “The Car Buying Process,” that is attached at the end of this project instruction. Write a four or five sentence paragraph that summarizes the main points from the article.
10 points
Step 3
Vehicle Safety Summary and Discussion: Go to https://www.iihs.org/
and record available results for small overlap, moderate overlap, side, and frontal crash prevention.
Go to the NHTSA site https://www.safercar.gov and record the frontal crash, side crash and rollover ratings for your vehicle.
10 points
Step 4 and Step 5
Pricing Information: Go to the Kelley Blue Book internet site https://www.kbb.com/
and record the “fair purchase price” and the MSRP for the new vehicle and the trade-in value for your old vehicle.
Also record the “CarsDirect” price for your new vehicle.
15 points
Step 6
Interest Rates: Go to https://www.bankrate.com/loans/auto-
loans/rates/#current-rates to get current auto loan rates. 10 points
Step 7
Calculate total cost of car, i.e., an estimate of the “drive-out” net cost for the vehicle based on the assumptions listed in the project instruction. Follow the format in the sample project.
10 Points
Step 8
Calculate the payments: in this step, you are required to calculate 12 monthly payments based on different assumptions on interest rates and number of payments. Each monthly payment you calculate is worth 4 point. The total is 48 points.
25 points
Step 9
Calculate total interest paid and additional interest paid over the life the loan for longer loan term and higher interest rate. 10 points
Total
100 points
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Time Value of Money Practice Scenarios
Please note that some scenarios may have answers that are either correct or incorrect based on calculations, while others will require you to answer based on your own situation. When responding to those questions, explain your answers using what you currently understand about financial concepts.
You have a chance to sell an antique today for $1,000. You believe you will be able to sell the time in three years for $1,200. Should you sell it today or wait? Use March 2023’s inflation rate (5%)
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Activity
Answer the following five (5) questions in complete sentences:
1. When would leasing a vehicle be a better option than buying?
2. Describe in at least five sentences how you will prepare to purchase your next
vehicle in order to (1) get the appropriate vehicle, (2) to get the best deal, and (3) to
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For the Questions 3-5 assume you want to finance (borrow) $12,000 for your next car
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3. What will be your monthly payment and the total amount paid over the life of the
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Payment
Total of all payments
PV
FV
RATE/INTEREST
PERIODS/N
(See next page for Questions 4 and 5)
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Purchase price of the home you chose from the Budget Project: ________$431,873______
Part 1: Financing your home
Loan Scenario 1: In this scenario, your financial institution is offering you a 30-year fixed mortgage with a 20% down payment at a 3.43% fixed rate.
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year. It is considering the following contracts: E
a. What are the profitability indexes of the projed Data Table
b. What should Fabulous Fabricators do?
a. What are the profitability indexes of the projects?
The profitability index for contract A is
***
Contract
A
B
C
ck on the following icon in order to copy its contents into a spreadsheet.)
Use of Facility
100%
60%
40%
NPV
$1.98 million
$1.02 million
$1.53 million
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Scenario Equipment Cost Loan Tern
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$ 145,000
$ 147,500
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48
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a. The breakeven point will be
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