Engineering Economic Analysis Case Study
Case Name The Smithson’s Mortgage Case Study Teams This case is designed to be conducted by a team of students. The discussion, questioning, and resolution of differences is an important part of the learning experience. Another significant advantage is the sharing of the workload in preparing the final case study report. Knowledge Background This case draws heavily on the material presented in Chapters 2 and 3 of Principles of Engineering Economic Analysis, 4th Edition by White, Case, Pratt, and Agee, particularly Section 3.4 (Principal Amount and Interest Amount in Loan Payments). To a limited extent it draws on concepts from Chapter 4 (Measuring the Worth of Investments), Chapter 5 (Comparison
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Undoubtedly their will be ups and downs but the long term average of 9% appears to be reasonable and stable for planning purposes. Since this
is a tax sheltered account, all investments will grow tax free until their retirement. Paul and Leslie have identified four potential mortgage options. They will make their selection from among these four based on your recommendation.
Available Mortgages
Mortgage I 30 year fixed rate @ 7.58%/yr/mo, monthly payments, minimum 5% down payment, 1 point closing costs Mortgage II 15 year fixed rate @ 7.13%/yr/mo, monthly payments, minimum 5% down payment, 1 point closing costs Mortgage III 30 year fixed rate @ 7.08%/yr/2-weeks, bi-weekly payments, minimum 5% down payment, 1 point closing costs Mortgage IV 15 year fixed rate @ 6.63%/yr/2-weeks, bi-weekly payments, minimum 5% down payment, 1 point closing costs
General Conditions Applicable to All Mortgages
( All mortgage calculations are rounded to the nearest penny on a payment by payment basis. All accumulated rounding error is compensated for with an adjustment in the final payment. “1 point” closing costs equals 1 percent of the loan value. These costs are associated with creating the loan and are due at the time the loan is originated (along with the down payment). They are not tax deductible. Paul and Leslie’s timing is such that the annual mortgage cycle will coincide with the calendar year. Tax
Will there be any trend or expected government legislating new tax laws that will have significant impact on real estate investments?
Subtitle C – High-Cost Mortgages redefines High-cost mortgage as a “consumer Credit transaction that is secured by the consumer’s principal dwelling”. These include credit transactions secured by a consumer’s principal dwelling whose interest rate is 6.5% more than the prime rate for similar transactions, subordinated mortgages secured by a consumers principal dwelling, points and fees, excluding mortgage insurance, and if the points and fees can be collected more than 36 months after a loan. New provisions are introduced for calculating adjustable rates alongside definitions for points and fees. When customers receive high-cost mortgages, they have to obtain pre-loan counseling given by a certified counselor. The Act also stipulates
Then Newbridge has its change to invest SDB. If not, how high the price Newbridge
Listen to this. The student health clinic here on campus say they couldn’t treat me here with the correct vaccinations so I need to go to the local hospital or to a doctor’s office. I looked up doctors near me that accept my dad’s health insurance plan. I have no luck finding a ride and any hope for paying for the doctors itself. The medicine which I know that I would be prescribed, I can’t afford. So, I won’t do anything about it. I won’t get a job in this town right now because I haven't settled in yet until I have a routine, which most likely is the second semester. Also, my first impressions of jobs available seem to be ruled by the clubs here or just hard to find. I’m afraid of finding a job because I still have pending charges, no
Go back in time to 1986.Do a SWOT analysis for Telefonica de Espana. Does your analysis lead to the same conclusions as Telefonica’s managers?
As Andrea crawled away she felt blood running out of her head and she didn’t have a clue what she did to deserve this…
The consuls began by letting a lady speak. “Pierce and you, girl, come with me.” Pierce and I exchanged glances, but obediently followed.
QMSC includes land, warehouse buildings, and equipment at gross book value in its investment base. This results to an EVA that signals a decrease in profitability during the early years of the assets when in fact, profits increased. It will be better for the company to use annuity depreciation so that the profitability calculations will show the correct EVA. Leased buildings and equipment are also part of the asset base. This motivates managers to lease rather own assets whenever the interest charge that is built into the rental cost is less than the capital charge that is applied to the investment base. Thus, the head office must think carefully before approving the leases of the districts as the managers might just be using it to window dress their performance. QMSC also includes inventory and accounts receivables, without subtracting standard accounts payable, using average values for the period. This is a good practice because these are representative of the assets used during the period and thus, conceptually a satisfactory measure of the amount that should be related to profits.
International Business Machines (IBM) was founded in New York in 1911 through the merger of three smaller companies and has come to be one of the most profitable and internationally recognized as Provider of Technology Products, Services and Management Consulting. In 1999, IBM created its Knowledge and Organizational Forum, in which both private and public sector organizations come together in order to discuss and “conduct pragmatic research on the growing scope and impact of knowledge-related initiatives”.
chosen for a position is only the first of the five levels every effective leader
Bezos's employers were not prepared to proceed with that kind of venture, and Bezos knew the only way to seize the opportunity was to go into business for himself. It would mean sacrificing a secure position in New York, but he and his wife, Mackenzie, decided to make the start.
The first C & C Grocery store was started in 1947 by Doug Cummins and his brother Bob. Both were
The aim of this report is to take into consideration the factors that are affecting the United Kingdom (UK) mortgage market as to whether the mortgage market will run into serious in the near future. Research is to be conducted and it will look into few factors that determine the continuity of the mortgage market, namely the housing market, inflation and interest rate. Besides this, it will also take into accounts of the new rules and regulations by the regulatory. A brief introduction of the types of mortgages and mortgage repayment options will also be discussed. The mortgage market will break down eventually after assessing the different elements as the conclusion.
“In Singapore, we always want to be the best in a lot of things. SIA is no different. … a lot of things that we have been taught from young, from our Asian heritage … filial piety, the care and concern, hospitality, and, of course, the most important part is trying, if we can, to do whatever we can to please the customer. And how do we do it? Sometimes, people just wonder, ‘How do you guys manage to do it with limited time and resources on a flight?’ yet we manage to do it somehow. Call us magicians.”
crucial part of the overall value proposition. Analyze and explain in detail the value that