4-1 Discussion: The Buy Versus Rent Decision

4-1 Discussion: The Buy Versus Rent Decision

Read the HBR case study Time Value of Money: The Buy Versus Rent Decision and calculate the best route for the graduate’s housing situation, developing your understanding of time value of money (TVM) concepts and calculations. Describe your assumptions, methodology, and results in your discussion narrative, and attach a simple spreadsheet supporting your analysis. This case study can be located in your custom textbook/case study bundle.

Critique your peers’ posts in relation to your own recommendation considering the assumptions your peers have made. Support your critique with sound reasoning and evidence.

Refer to the Discussion Rubric for directions on completing these discussions.

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Buy/Rent Response

Student 1

Indeed the introduction to the issue using the time value of money concept of money helps put things into perspective in the presented case. Essentially, any finances at hand are always better than any expected funds (Wee and Law 214). The client in the presented case would be better of investing with the amount at hand rather than making plans for how she is to accumulate more money and invest in future. However, it is also important to make well-informed decisions, which explains the necessity for an analysis of the potential impact of buying or renting the property.

(298 words)