The Nomani Family’s Rent-or-Buy Dilemma in Northern India

內容大綱
In December 2022, Shariq Nomani had been living with his family in a rented apartment in Lucknow, India. Even though they liked the place, which had all the necessary amenities, they were thinking of buying a unit in the same community. After collecting all the necessary information, Shariq sat down to figure out the best alternative between two options: buying and renting. He needed to undertake a comprehensive quantitative analysis by applying the concept of time value of money to make the optimal decision.
學習目標
This case is targeted at entry-level undergraduate and graduate students. The case illustrates the basics of the time value of money and its application and can be covered in a course on financial management, corporate finance, or real estate finance. <br><br>After working through the case and assignment questions, students will be able to do the following:<br><br><ul><li>Explain the concept of the time value of money and its application in investment.</li><li>Define the opportunity cost of capital and explain how it is applied in evaluating investment proposals.</li><li>Evaluate an investment project and make an optimal decision for a rent-or-buy dilemma.</li></ul>
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