Ivey Publishing

Product Details

Time Value of Money: The Buy Versus Rent Decision
Product Number:
9B14N024
Publication Date:
08/28/2014
Revised Date:
06/05/2015
Length:
2 pages (2 pages of text)
BestSeller:
2020
Product Type:
Case (Gen Exp)
Source:
Ivey
A recent MBA graduate had been renting a condominium, and a similar unit next door had just been listed for sale. Now facing the classic buy-versus-rent decision, the young grad decided it was time for her to apply some of the analytical tools she had acquired in business school — including “time value of money” concepts — to her personal life.
Learning Objective:
  • To review and provide practical applications of several time-value-of-money concepts.
  • To provide an understanding of how to estimate cash flows and why opportunity costs can be important.
  • To introduce students (informally) to the net present value (NPV) framework.
  • To illustrate the fact that most decisions can be evaluated quantitatively, using time-value-of-money concepts to supplement qualitative considerations.
This case can be used in a variety of contexts – including in a course on Corporate Finance, Financial Management or Real Estate or as an introductory case discussion in an undergraduate or MBA program – to help students to understand time-value-of-money concepts, as well as the practical applications of such concepts.
Issues:
Disciplines:
Finance
Industries:
Finance and Insurance
Setting:
Canada, 2014
Intended Audience:
Undergraduate/MBA
Price:
$3.15 CAD / $3.10 USD Printed Copy
$2.65 CAD / $2.62 USD Permissions
$2.65 CAD / $2.62 USD Digital Download
Associated Materials
Translations: Portuguese (2 pages)
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