Be a Financial Planner-Discussion Casé 1This case is arailable in MyFinancelab.Samuel and Grace Paganelli want to replace their 1996 pickup, which Samuel drives for work.They already own two vehicles, but they need to replace Samuel's truck because it has nearly225,000 miles on the odometer. The replacement must be a vehicle that fits his job as a self-employed electrician.Samuel knows that he drives a lot on the job and is worried about the high-mileage penalty onmany leases, as well as the fees for excessive wear and tear. However, Grace is more concernedabout the depreciation loss on a new truck purchase than the mileage penalty and wouldrather lease the new vehicle. She also likes the idea of having a new, safer truck every few yearswithout the hassle of resale. Samuel also does not like the fact that, if they lease, they would notown the vehicle he will use for work. Warranty protection to insure the truck remains in serviceis very important.They feel that they can afford to spend $550 per month over 4 years for a new vehicle, aslong as their other associated expenses such as insurance, gas, and maintenance are not toohigh. The Paganellis also do not know where to start looking for a vehicle without the hassle ofnegotiating with dealerships. 1. Identify 7 sources of vehicle purchasinginformation and the type of information availablein each source.2. For all the information available, what specificinformation about the different makes and modelsis the most relevant to Samuel and Grace inmaking their purchasing decision.3. What is the highest price they can pay on the newvehicle if they can afford a down payment of$4,000?Assume they finance their purchase for 48months at 7.5%?4. If they were to lease, what key factors areimportant in a good lease?

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Practical Management Science

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ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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1. Identify 7 sources of vehicle purchasing information and the type of information available in each source.