Module 4 Rent vs. Buy Limit your analysis only to the 2 inclusive options 1. Create a decision tree outlining Scott’s Options. 2. What are the costs/income associated with Scotts decision each year...

Module 4 Rent vs. Buy

Limit your analysis only to the 2 inclusive options

1. Create a decision tree outlining Scott’s Options.

2. What are the costs/income associated with Scotts decision each year over three years?

a. Rent inclusively, she pays only the tv/internet)

b. Buy and charge rent inclusively (assume there are no additional closing costs)

3. What happens if the housing market is stagnate at the end of three years??

a. Depreciates

b. Appreciated

4. Based on a three-year time horizon, should Scott buy or rent? Why

5. If you were in Scott’s position what would you do? And Why?