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Time Value of Money: A Home Investment Decision Dilemma

Arit Chaudhury; Varun Dawar; Rakesh Arrawatia;

商品編號:9B17N016
出版日期:2017/07/26
再版日期:2017/07/26
商品來源:Ivey
商品主題:Finance; International Business
商品類型:Case (Field)
涵蓋議題:time value of money;opportunity cost;taxation;rental property;home purchase
難易度:4 - Undergraduate/MBA
內容長度:4 頁
地域:India
產業:
事件年度:2016

In early 2016, Naresh Jain was busy looking at various rental properties on popular real estate listing websites. Because of a sudden downturn in business conditions and an immediate need for money, Jain’s landlord wanted to sell the property and therefore had asked Jain to vacate the premises within 30 days. Jain had been living in the spacious, two-bedroom apartment in North West Delhi for the past five years as it was within a reasonable commuting distance to his workplace. After looking at various rental properties, Jain had come across a furnished apartment identical to his, next door, and met with a broker to discuss it. During the discussion, it came up that an identical apartment in an adjoining locality was for sale at ?12.5 million. Jain was thus faced with a quantitative finance decision of buy versus rent to arrive at the right option for him given his current financial conditions and the potential future benefits.

教學手冊:8B17N016;
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