(130 Points)

Q1. A friend of mine is graduating soon. She accepted a job offer where she will be living away

from her family for the next couple of years. She is in the market looking for a new car and she

needs your help in order to decide whether to buy or lease. Since she does not know yet if she is

going to stay in the new job or not, she wants a short term commitment, two to three years.

She is currently looking at the 2018 Toyota Corolla. Based on the following information and the

fact that her opportunity cost is 6%, your recommendation to buy or lease is needed if the decision

is over two or three years. A detailed and complete analysis is required to support your claims.

New 2018 Corolla LE Lease â

$179 per Month / 36 Months / $2,878 Due at Signing

OFFER DETAILS

For well-qualified lessees with approved credit through Southeast Toyota Finance. Not all

lessees will qualify for this payment amount. Closed-end lease on new 2018 Corolla LE model #

1852 with automatic transmission and select equipment. Adding options increases payment.

$179.00 per month for 36 months. $2,878 due at signing includes $2,699 down payment and first

month's payment. No security deposit required. $17,582 Adjusted Capitalized Cost is based on

down payment; excludes tax, tag, registration, title and dealer fees. Dealer fees vary by dealer.

Monthly payments do not include applicable taxes. Lessee pays the remainder of maintenance

after ToyotaCare expires, excess wear and use, and $0.18 per mile over 12,000 miles per year.

Lease payments total $6,444. Disposition Fee of $350 due at lease-end. May not be combined

with certain other offers. Must take delivery between 06/05/18 and 07/09/18.

Assume that the same offer details above apply for 36 month lease and the mileage limit is 36,000

miles, but she wonât go above the mileage limit.

The MSRP for New 2018 Corolla LE is $20,897 (do not worry about taxes). She applied for an

auto loan and was able to get 1.99% APR compounded monthly for 24 or 36 months. Auto loan

payments are due the end of the month, while lease payments are due the first day of each month.

No down payment required to purchase the car.

COST TO OWN A 2018 TOYOTA COROLLA State:

Miles Driven Annually: 12,000

Cost to Own Breakdown Year by

Year: Year 1 Year 2 Year 3 Year 4 Year 5 Total

Depreciation $4,675 $1,235 $1,164 $1,038 $889 $9,002

Maintenance $0 $0 $135 $111 $812 $1,057

Repairs $0 $0 $0 $706 $918 $1,625

Every new vehicle purchased or leased includes complementary maintenance and roadside

assistance for 2 years or 25,000 miles.

Based on the KBB, the following will be the fair value of the car for different parties in 24-month

and 36-month.

In 24-Month In 36-Month

Retail Value $15,518 $14,967

Trade-In $12,418 $11,967

Private Value $13,518 $13,017

Note: The dealership will sell you a used car at the Retail Value, but buy it from you at the Trade-

In value. If you decided to sell your car by yourself to a private party, you will receive the private

value.

Hint: The main goal of this project is to see whether you understand the concept of Time Value of

Money (TVM), we covered in Chapter 4. TVM is the most important principle in the world of

finance, and I have to make sure you understand that money has different values over time

depending on the required interest rate. In other words, it is not simply adding or subtracting

numbers (a dollar today is not equivalent to a dollar tomorrow). Therefore, you need to create a

time line for each option, buy vs. lease, and for each period, 24 vs. 36 mo. On this time line, you

have to include all projected monthly payments based on the provided information. Once you have

all the payments on your time line, you can now discount them (calculate the present value) back

to period t=0 and compare your options. Feel free to use spreadsheets if you like to do it this way.

Finally, before you email or call me with your questions, you need to review Ch. 4 carefully. I may

give hints, but I will NOT solve the project for you!

- A detailed and complete analysis for the problem is required. Excel spreadsheets,

It's time to examine research, citation, and informationliteracy and how they fit into the broader concept of academicintegrity. In order to prepare for this discussion, review theAcademic Integrity Policy found in the course syllabus.

Introduction
As an institution of higher learning, Rasmussen College iscommitted to preparing students to be active, productive andsuccessful contributors to a global community. In pursuit of thiscommitment, students, faculty and staff of Rasmussen College areexpected to uphold the very highest business and personal ethics.Students of Rasmussen College commit to holding themselves andtheir peers to the foremost level of academic integrity, and acceptresponsibility should behaviors and actions fall short of theCollege's expectations.

Definitions

Academic Misconduct is the violation of theAcademic Integrity Policy, including all forms of academic cheatingincluding but not limited to acts listed below and any other actperpetrated to give unfair advantage to the student.

Cheating: Distributing or receiving answers orinformation by any means other than those expressly permitted by aninstructor for any academic exercise. Examples include:

Copying answers, data, or information for any academic exercisefrom another student in which the student is not expresslypermitted to work jointly with others.

Impersonation: Assuming another student'sidentity or allowing another person to complete an academicexercise on one's own behalf.

Using or attempting to use unauthorized materials, texts,devices, notes, information or study aids in any academic exercise(i.e., assignments, discussions, tests, quizzes, papers, labs).

Collusion: Knowingly assisting, attempting toassist, or receiving assistance from another student or students tocommit academic misconduct, or conspiring with any other person inor outside of the College to commit misconduct.

Destruction, Theft, Obstruction, Interference:Seeking to gain unfair academic advantage by destroying, damaging,or stealing equipment or products of any academic exercise; orobstructing or interfering with an instructor's materials oranother student's academic work.

Fabrication, Falsification, Forgery:Deliberately falsifying, altering, or inventing student records,information or citations. Forgery is the act of imitating orcounterfeiting documents, signatures, and the like.

Plagiarism is the act of representing anindividual's or organization's words, thoughts, or ideas as one'sown. Examples include:

Using information (a paraphrase or quotation, in whole or inpart) from a source without attempting to give credit to the authorof that source.

Using charts, illustrations, images, figures, equations, etc.,without citing the source.

Using an academic exercise (in whole or in part) purchased orcopied from a ghostwriter or paper/essay mill.

Copyright infringement or piracy, including the use, alteration,or duplication of media, software, code, or information whenexpressly prohibited or where copyright exists or is implied.

Submitting work previously graded in another course withoutprior approval by the course instructor; or, submitting the samework in two or more concurrent courses without prior approval byall course instructors.

Violations
A student who violates the Academic Integrity policy faces severepenalty from the College. Violations may occur in one or morecourses in one or more quarters and accumulate for all quarters inwhich the student is enrolled. Upon conclusion by the student'sinstructor and the student's Dean that the student has committedAcademic Misconduct, the following penalties will be applied:

First Offense. The student will receive nocredit on the assignment in question and will not be allowed toredo the work.

Second Offense. The student will be expelledfrom the course, and the final grade assigned for the course willbe an âF/FA'. The student may re-take the course, but the âF/FA'will remain on the transcript even if the student retakes thecourse and earns a passing grade.

The College reserves the right todismiss a student from the College if there are more than twooffenses. A student dismissed from the College because of AcademicMisconduct may not reenroll.
Students who commit Academic Misconduct also run the risk ofharming future educational and employment opportunities. Referenceforms sent by prospective employers and other educationalinstitutions often ask for judgment and comment on a student'sethical behavior. As the form is sent at the behest of the student,the student waives any rights he or she may have under the FamilyEducational Rights and Privacy Act to keep Academic Integrityviolations confidential.

Concurrent Offenses: A concurrent offense is aninstance of Academic Misconduct that occurs at the same time asanother instance (i.e., two or more assignments submitted at thesame time in the same or different courses), or instances ofmisconduct that occur prior to the student receiving notice of theimmediate prior offense. Concurrent offenses will be treated as asingle offense, and the appropriate penalty will be applied for allconcurrent violations.

Appeal: A student who disagrees with a rulingof Academic Misconduct has one week to appeal the ruling to his orher Dean. All appeals are reviewed by the Academic IntegrityCommittee, which has one week from the time that they receive theappeal to thoroughly investigate and rule on the appeal. If theissue remains unresolved, the student may submit a writtenstatement of appeal to the Assistant Vice President of AcademicAffairs thereafter. Response will be given within 30 days.

Share in your own words the meaning of the policy and why youthink it is important. How do the concepts of research, citation,and information literacy relate to academic integrity?

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