REPAIR OR REPLACE?

Financial Analysis Project

Madison Goldstein
June 27, 2016
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Table of Contents
Introduction .......................................................................................................................................... 2
Current Car ........................................................................................................................................... 3
Alternatives .......................................................................................................................................... 4
Financing Options ................................................................................................................................ 6
Analysis and Results ............................................................................................................................ 7
Appendix A: ......................................................................................................................................... 9
Appendix B: ....................................................................................................................................... 10
Appendix C: ....................................................................................................................................... 11
Appendix D: ....................................................................................................................................... 13
Appendix E:........................................................................................................................................ 14
Appendix F: ........................................................................................................................................ 18
References .......................................................................................................................................... 23
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Introduction
Description of Project:

A common economic analysis that can be used in everyday life is the evaluation of replacing your
personal automobile. What may sound like a simple question, to keep or to buy, is made
complicated by the complexity of the options in todays consumer market. It is essential to
economically evaluate the alternative options to make an informed decision that works best on an
individual level. The specific purpose of this project is to evaluate the difference between keeping
my current car and replacing my auto with the current/new version and a car of a different class.
Additionally, different methods of financing the replacement purchase are explored.

Research:

In order to appropriately evaluate the difference between keeping and replacing my current car,
extensive research had to be conducted. The sources I relied on most heavily for data estimates and
information were Edmunds.com, FuelEconomy.gov, Mazda.com, and BankRate.com.

For the entirety of the project, the following assumptions were made.

Assumptions:

The planning period is 5 years out from this analysis point (time=0), at the end of which the
car in possession will be sold for its estimated salvage value and no new purchase will be
made
All estimated values found from reliable online sources (Edmunds.com, FuelEconomy.gov)
are considered correct/exact and will not change over the planning horizon
Current car is fully paid off
Current car doesnt need any major repairs, only routine maintenance for remainder of life
Maintenance Schedule and Cost assumptions (see Appendix A for full details)
o If maintenance task is required, cost is reflected at end of the year in which the task
is completed
o Each car will be driven 15,000 miles per year, 45% highway and 55% city driving
o Current fuel prices will remain constant over 5 year planning period
Financing assumptions
o Depreciation amounts for each vehicle option are estimated using Edmunds.com
True Cost To Own calculator
o New car alternatives would be financed over a 60 month (5 year) period at 4.26%
(according to BankRate.com estimate for current auto loan interest rates)
If my current car is going to be replaced with a new alternative, I will trade my current car in
for the Dealer Trade-In value calculated from Edmunds True Market Value analysis, to
be used towards paying for the new vehicle
Personal MARR = 0.06%, the current national average savings account interest rate if my
money wasnt being used to pay for the cars, it would be gaining this interest in the bank
(national average as of April 2016 according to GoBankingRates.com)
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Current Car
The first step I took in approaching this problem was to determine many aspects about my current
car: details, the current worth, and the costs associated with using this car including maintenance
and fuel.

Details:
Table 1: Current Car Details

Year 2011
Make Mazda
Model CX-9
Style Grand Touring SUV / 3.7L V6 / AWD / 6-speed Auto
Color Brilliant Black Clear coat
Optional Equipment Add-Ons N/A
Mileage 60,000
Condition Clean Limited Reconditioning Required

Current Worth:

To approximate the current value of my car, I input the above details into the popular website
Edmunds.com which then provides an Edmunds True Market Value (an estimated worth).

Table 2: Current Car Value

Option Value
Dealer Trade-In $14,849
Private Party $16,472

Costs:

The next step was to estimate the costs associated with owning and maintaining my current car
which include routine maintenance costs and fuel costs. Operating under the maintenance
schedule/cost assumptions and using yearly fuel estimate usage costs from FuelEconomy.gov, both
shown in detail in Appendix A, I created the following cash flow of cost estimates.

Table 3: Current Car Costs

EOY Cost ($)

0 2720
1 2120
2 4320
3 2720
4 4320
5 2120
A more detailed approach to creating this table can be found in Appendix B.
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Alternatives
The next steps I took in approaching this problem were to determine the various aspects of the
alternative vehicles with which I would replace my current car: details, the current retail prices, and
the costs associated with using the cars including maintenance and fuel. The two alternative options
I could replace my 2011 Mazda CX-9 with are the current version of it, the 2016 Mazda CX-9, or a
car of a different class, the 2016 Mazda 6.

Details:
Table 4 and 5: New Version and New Model Car Details

Year 2016
Make Mazda
Model CX-9
Style Grand Touring SUV / 3.7L V6 / AWD / 6-speed Auto
Color Jet Black Mica
Optional Equipment Add-Ons N/A
Mileage 0
Condition Outstanding

Year 2016
Make Mazda
Model 6
Style Grand Touring Car / 2.5L 4-cyl. / FWD / 6-speed Auto
Color Jet Black Mica
Optional Equipment Add-Ons N/A
Mileage 0
Condition Outstanding

Current Retail Prices:

To determine the current retail prices of these alternatives, shown below in Table 6, I used
Mazda.com to build the cars (see Appendix C for details).

Table 6: New Version and New Model Retail Prices

Alternative Retail Price

Mazda CX-9 $42,870
Mazda 6 $31,030

Costs:

The next step was to estimate the costs associated with owning and maintaining these two car
alternatives which include routine maintenance costs and fuel costs. Operating under the
maintenance schedule/cost assumptions and using yearly fuel estimate usage costs from
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FuelEconomy.gov, both shown in detail in Appendix A, I created cash flows of cost estimates, seen
below in Tables 7 and 8.

Table 7 and 8: New Version and New Model Costs

EOY Cost ($)

0 0
1 1770
2 1770
3 4570
4 1770
5 1770

EOY Cost ($)

0 0
1 1320
2 1320
3 4120
4 1320
5 1320

A more detailed approach to creating these tables can be found in Appendix D.

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Financing Options

The final step before evaluating my alternatives was to determine the financing details. For my
current car, this process was simplified due to the fact that it is already fully paid off. For each of
the other two alternatives, two different financing methods are considered: lump sum purchases and
financing over a 60 month period at 4.26%. In each method, my current car would be traded in to
the dealer for $14,849 to be used as an immediate payment toward the cost of the new vehicle.

Lump Sum:

For the lump sum purchase option, the prices for the two new alternatives were calculated as seen
below in Tables 9 and 10.

Table 9 and 10: New Version and New Model Lump Sum Financing

Mazda Retail Price_CX-9 $42,870

Current Car Trade-In Value $14,849
Lump Sum Purchase Amount $28,021

Mazda Retail Price_6 $31,030

Current Car Trade-In Value $14,849
Lump Sum Purchase Amount $16,181

Financing:

Assuming that for the financing option, equal end-of-period payments will be made, the monthly
payments seen below in Tables 11 and 12 were calculated:

Table 11 and 12: New Version and New Model Financing

Loan Amounts $28,021

Terms Equal Monthly Payments
60 Months
4.26% Interest/Year
0.355% Interest/Month
Total Monthly Payment $519.34

Loan Amounts $16,181

Terms Equal Monthly Payments
60 Months
4.26% Interest/Year
0.355% Interest/Month
Total Monthly Payment $299.90

The full loan repayment amortization schedules for each vehicle can be seen in Appendix E.
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Analysis and Results

Before any comparison analysis could be performed for my alternatives, the future salvage values of
each vehicle after five years needed to be determined. To determine the salvage values,
Edmunds.com True Cost To Own depreciation estimates were used and subtracted from the
current value of each vehicle.

Depreciation and Salvage Values:

For my current vehicle, the estimated depreciation expense, approximately $9000, was subtracted
from the Private Party Current Value to determine the salvage value, seen below in Table 13.
Table 13: Current Car Salvage Value

Current Value (Private Party) $16,472

Total Depreciation Amount $9000
Salvage Value $7472

For the two alternatives, depreciation estimates of $18,677 and $17,203 were used and subtracted
from the Current Retail Prices to determine the salvage values, found below in Tables 14 and 15.
Table 14 and 15: New Version and New Model Salvage Values

Mazda Retail Price_CX-9 $42,870

Total Depreciation Amount $18,677
Salvage Value $24,193

Mazda Retail Price_6 $31,030

Total Depreciation Amount $17,203
Salvage Value $13,827

Engineering Economy Analysis:

In order to determine the best financial decision in terms of keeping or replacing my current car, I
compared the alternatives using a cash flow (insiders viewpoint) before-tax annual worth analysis.
The results are summarized below in Table 16.
Table 16: Present Worth of Each Alternative

Alternative Present Worth

Current Car -$10,842.33
New Version
Lump Sum -$15,529.51
Financed -$18,621.76
New Class
Lump Sum -$11,778.51
Financed -$13,564.11
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For details on the calculations of each worth, see Appendix F.

Recommendation:

Based on the Present Worth calculated for each alternative, the least expensive option for me is to
keep my current car. The ranking of alternatives, from least expensive to most is:

Current Car
New Class - Lump Sum
New Class - Financed
New Version Lump Sum
New Version Financed

Complications and Considerations:

Although it appears that keeping my current car is the most economical approach, this decision is
ultimately influenced by many other, quite subjective, factors. The first factor that could change this
finding is the planning horizon. I chose a five year planning horizon because of the simplicity of
this number, as well as the assumption that my current vehicle would reach approximately 135,000
miles after this time period. For me personally, I assumed that I would not want to drive the car
beyond this point, however, it is possible that I could have and therefore extended the planning
period. Additionally, there is no reason for the two new vehicle alternatives to be sold at the end of
the five year period, this was another decision I made for the purpose of this analysis. If these
vehicles were kept beyond this point, their worth could change drastically.

In performing this analysis, I chose to explore the financing options of a lump sum payment, or
financing with a loan. Intuitively, it is obvious that paying for the new vehicles with a lump sum at
time zero is preferred to paying interest on a loan. However, given that I am a college student with
debts that need to be paid off, the reality of being able to drop lump sums of $16,181-$28,021 to
purchase a new vehicle outright is highly doubtful. Leasing the purchases could prove to be an
interesting alternative financing method which may have produced different results.

Finally, I think it is worth noting that I am very fortunate to be considering my current, relatively
new vehicle of such great worth that is already paid for. Having no payments left to make on this
car, thanks to my very generous parents, is the factor that makes keeping this car the best
alternative. Had this not been the case, the results may have been different.
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Appendix A:
Maintenance Schedule and Cost Assumptions

Maintenance Procedures Approximate Frequency Cost ($)

Replace Windshield Wipers 1x / year 20
Oil Change Every 3000 miles (~5x / year) 40 (200 / year)
Transmission Fluid and
Every 50,000 miles 600
Coolant System Flush
Replace Tires Every 40,000 miles 900
Brakes Every 40,000 miles 1300

Annual Fuel Costs

Alternative Average MPG Yearly Fuel Cost ($)

Current Car _ Mazda CX-9 19 1900
New Version _ Mazda CX-9 23 1550
New Class _ Mazda 6 32 1100
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Appendix B:
Current Car Costs

Maintenance
Mileage EOY Costs ($)
Procedures
45,000 N/A -1 N/A
Windshield, Oil x5,
60,000 0 2720
Fluid/Coolant, Fuel
Windshield, Oil x5,
75,000 1 2120
Fuel
Windshield, Oil x5,
90,000 2 4320
Brakes, Tires, Fuel
Windshield, Oil x5,
105,000 3 2720
Fluid/Coolant, Fuel
Windshield, Oil x5,
120,000 4 4320
Brakes, Tires, Fuel
Windshield, Oil x5,
135,000 5 2120
Fuel
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Appendix C:
Mazda.com Car Alternatives Build

2016 Mazda CX-9:

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2016 Mazda 6:
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Appendix D:

Alternatives Costs

2016 Mazda CX-9:

Maintenance
Mileage EOY Costs ($)
Procedures
0 N/A 0 0
Windshield, Oil x5,
15,000 1 1770
Fuel
Windshield, Oil x5,
30,000 2 1770
Fuel
Windshield, Oil x5,
45,000 Fluid/Coolant, Brakes, 3 4570
Fuel
Windshield, Oil x5,
60,000 4 1770
Fuel
Windshield, Oil x5,
75,000 5 1770
Fuel

2016 Mazda 6:

Maintenance
Mileage EOY Costs ($)
Procedures
0 N/A 0 0
Windshield, Oil x5,
15,000 1 1320
Fuel
Windshield, Oil x5,
30,000 2 1320
Fuel
Windshield, Oil x5,
45,000 Fluid/Coolant, Brakes, 3 4120
Fuel
Windshield, Oil x5,
60,000 4 1320
Fuel
Windshield, Oil x5,
75,000 5 1320
Fuel
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Appendix E:

Full Loan Repayment Amortization Schedules

2016 Mazda CX-9:

Interest Total Money Total Money

End
Accrued Owed Before Interest Principal Total Owed After
of
During Yearly Payment Payment Payment Yearly
Year
Year Payment Payment
0 $28,021.00
1 $99.47 $28,120.47 $99.47 $419.87 $519.34 $27,601.13
2 $97.98 $27,699.11 $97.98 $421.36 $519.34 $27,179.77
3 $96.49 $27,276.26 $96.49 $422.86 $519.34 $26,756.92
4 $94.99 $26,851.90 $94.99 $424.36 $519.34 $26,332.56
5 $93.48 $26,426.04 $93.48 $425.86 $519.34 $25,906.70
6 $91.97 $25,998.67 $91.97 $427.37 $519.34 $25,479.32
7 $90.45 $25,569.77 $90.45 $428.89 $519.34 $25,050.43
8 $88.93 $25,139.36 $88.93 $430.41 $519.34 $24,620.01
9 $87.40 $24,707.42 $87.40 $431.94 $519.34 $24,188.07
10 $85.87 $24,273.94 $85.87 $433.48 $519.34 $23,754.60
11 $84.33 $23,838.93 $84.33 $435.01 $519.34 $23,319.58
12 $82.78 $23,402.37 $82.78 $436.56 $519.34 $22,883.02
13 $81.23 $22,964.26 $81.23 $438.11 $519.34 $22,444.91
14 $79.68 $22,524.59 $79.68 $439.66 $519.34 $22,005.25
15 $78.12 $22,083.37 $78.12 $441.22 $519.34 $21,564.02
16 $76.55 $21,640.58 $76.55 $442.79 $519.34 $21,121.23
17 $74.98 $21,196.21 $74.98 $444.36 $519.34 $20,676.87
18 $73.40 $20,750.27 $73.40 $445.94 $519.34 $20,230.93
19 $71.82 $20,302.75 $71.82 $447.52 $519.34 $19,783.41
20 $70.23 $19,853.64 $70.23 $449.11 $519.34 $19,334.29
21 $68.64 $19,402.93 $68.64 $450.71 $519.34 $18,883.59
22 $67.04 $18,950.62 $67.04 $452.31 $519.34 $18,431.28
23 $65.43 $18,496.71 $65.43 $453.91 $519.34 $17,977.37
24 $63.82 $18,041.19 $63.82 $455.52 $519.34 $17,521.84
25 $62.20 $17,584.04 $62.20 $457.14 $519.34 $17,064.70
26 $60.58 $17,125.28 $60.58 $458.76 $519.34 $16,605.94
27 $58.95 $16,664.89 $58.95 $460.39 $519.34 $16,145.54
28 $57.32 $16,202.86 $57.32 $462.03 $519.34 $15,683.52
29 $55.68 $15,739.19 $55.68 $463.67 $519.34 $15,219.85
30 $54.03 $15,273.88 $54.03 $465.31 $519.34 $14,754.54
31 $52.38 $14,806.92 $52.38 $466.97 $519.34 $14,287.57
32 $50.72 $14,338.29 $50.72 $468.62 $519.34 $13,818.95
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33 $49.06 $13,868.01 $49.06 $470.29 $519.34 $13,348.66

34 $47.39 $13,396.05 $47.39 $471.96 $519.34 $12,876.71
35 $45.71 $12,922.42 $45.71 $473.63 $519.34 $12,403.08
36 $44.03 $12,447.11 $44.03 $475.31 $519.34 $11,927.76
37 $42.34 $11,970.11 $42.34 $477.00 $519.34 $11,450.76
38 $40.65 $11,491.41 $40.65 $478.69 $519.34 $10,972.07
39 $38.95 $11,011.02 $38.95 $480.39 $519.34 $10,491.68
40 $37.25 $10,528.92 $37.25 $482.10 $519.34 $10,009.58
41 $35.53 $10,045.11 $35.53 $483.81 $519.34 $9,525.77
42 $33.82 $9,559.59 $33.82 $485.53 $519.34 $9,040.24
43 $32.09 $9,072.34 $32.09 $487.25 $519.34 $8,552.99
44 $30.36 $8,583.35 $30.36 $488.98 $519.34 $8,064.01
45 $28.63 $8,092.64 $28.63 $490.72 $519.34 $7,573.29
46 $26.89 $7,600.18 $26.89 $492.46 $519.34 $7,080.84
47 $25.14 $7,105.97 $25.14 $494.21 $519.34 $6,586.63
48 $23.38 $6,610.01 $23.38 $495.96 $519.34 $6,090.67
49 $21.62 $6,112.29 $21.62 $497.72 $519.34 $5,592.95
50 $19.85 $5,612.80 $19.85 $499.49 $519.34 $5,093.46
51 $18.08 $5,111.54 $18.08 $501.26 $519.34 $4,592.20
52 $16.30 $4,608.50 $16.30 $503.04 $519.34 $4,089.15
53 $14.52 $4,103.67 $14.52 $504.83 $519.34 $3,584.33
54 $12.72 $3,597.05 $12.72 $506.62 $519.34 $3,077.71
55 $10.93 $3,088.63 $10.93 $508.42 $519.34 $2,569.29
56 $9.12 $2,578.41 $9.12 $510.22 $519.34 $2,059.07
57 $7.31 $2,066.38 $7.31 $512.03 $519.34 $1,547.03
58 $5.49 $1,552.53 $5.49 $513.85 $519.34 $1,033.18
59 $3.67 $1,036.85 $3.67 $515.68 $519.34 $517.51
60 $1.84 $519.34 $1.84 $517.51 $519.34 $0.00
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2016 Mazda 6:

Interest Total Money Total Money

End
Accrued Owed Before Interest Principal Total Owed After
of
During Yearly Payment Payment Payment Yearly
Year
Year Payment Payment
0 $16,181.00
1 $57.44 $16,238.44 $57.44 $242.46 $299.90 $15,938.54
2 $56.58 $15,995.12 $56.58 $243.32 $299.90 $15,695.22
3 $55.72 $15,750.94 $55.72 $244.18 $299.90 $15,451.04
4 $54.85 $15,505.89 $54.85 $245.05 $299.90 $15,205.99
5 $53.98 $15,259.97 $53.98 $245.92 $299.90 $14,960.07
6 $53.11 $15,013.18 $53.11 $246.79 $299.90 $14,713.28
7 $52.23 $14,765.52 $52.23 $247.67 $299.90 $14,465.61
8 $51.35 $14,516.97 $51.35 $248.55 $299.90 $14,217.07
9 $50.47 $14,267.54 $50.47 $249.43 $299.90 $13,967.64
10 $49.59 $14,017.22 $49.59 $250.31 $299.90 $13,717.32
11 $48.70 $13,766.02 $48.70 $251.20 $299.90 $13,466.12
12 $47.80 $13,513.92 $47.80 $252.10 $299.90 $13,214.02
13 $46.91 $13,260.93 $46.91 $252.99 $299.90 $12,961.03
14 $46.01 $13,007.05 $46.01 $253.89 $299.90 $12,707.15
15 $45.11 $12,752.26 $45.11 $254.79 $299.90 $12,452.36
16 $44.21 $12,496.56 $44.21 $255.69 $299.90 $12,196.66
17 $43.30 $12,239.96 $43.30 $256.60 $299.90 $11,940.06
18 $42.39 $11,982.45 $42.39 $257.51 $299.90 $11,682.55
19 $41.47 $11,724.02 $41.47 $258.43 $299.90 $11,424.12
20 $40.56 $11,464.68 $40.56 $259.34 $299.90 $11,164.78
21 $39.63 $11,204.41 $39.63 $260.27 $299.90 $10,904.51
22 $38.71 $10,943.22 $38.71 $261.19 $299.90 $10,643.32
23 $37.78 $10,681.11 $37.78 $262.12 $299.90 $10,381.21
24 $36.85 $10,418.06 $36.85 $263.05 $299.90 $10,118.16
25 $35.92 $10,154.08 $35.92 $263.98 $299.90 $9,854.18
26 $34.98 $9,889.16 $34.98 $264.92 $299.90 $9,589.26
27 $34.04 $9,623.30 $34.04 $265.86 $299.90 $9,323.40
28 $33.10 $9,356.50 $33.10 $266.80 $299.90 $9,056.60
29 $32.15 $9,088.75 $32.15 $267.75 $299.90 $8,788.85
30 $31.20 $8,820.05 $31.20 $268.70 $299.90 $8,520.15
31 $30.25 $8,550.40 $30.25 $269.65 $299.90 $8,250.50
32 $29.29 $8,279.79 $29.29 $270.61 $299.90 $7,979.89
33 $28.33 $8,008.22 $28.33 $271.57 $299.90 $7,708.32
34 $27.36 $7,735.68 $27.36 $272.54 $299.90 $7,435.78
35 $26.40 $7,462.18 $26.40 $273.50 $299.90 $7,162.28
36 $25.43 $7,187.70 $25.43 $274.47 $299.90 $6,887.80
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37 $24.45 $6,912.26 $24.45 $275.45 $299.90 $6,612.36

38 $23.47 $6,635.83 $23.47 $276.43 $299.90 $6,335.93
39 $22.49 $6,358.42 $22.49 $277.41 $299.90 $6,058.52
40 $21.51 $6,080.03 $21.51 $278.39 $299.90 $5,780.13
41 $20.52 $5,800.65 $20.52 $279.38 $299.90 $5,500.75
42 $19.53 $5,520.28 $19.53 $280.37 $299.90 $5,220.38
43 $18.53 $5,238.91 $18.53 $281.37 $299.90 $4,939.01
44 $17.53 $4,956.54 $17.53 $282.37 $299.90 $4,656.64
45 $16.53 $4,673.17 $16.53 $283.37 $299.90 $4,373.27
46 $15.53 $4,388.80 $15.53 $284.37 $299.90 $4,088.90
47 $14.52 $4,103.41 $14.52 $285.38 $299.90 $3,803.51
48 $13.50 $3,817.02 $13.50 $286.40 $299.90 $3,517.12
49 $12.49 $3,529.60 $12.49 $287.41 $299.90 $3,229.70
50 $11.47 $3,241.17 $11.47 $288.43 $299.90 $2,941.27
51 $10.44 $2,951.71 $10.44 $289.46 $299.90 $2,651.81
52 $9.41 $2,661.22 $9.41 $290.49 $299.90 $2,361.32
53 $8.38 $2,369.70 $8.38 $291.52 $299.90 $2,069.80
54 $7.35 $2,077.15 $7.35 $292.55 $299.90 $1,777.25
55 $6.31 $1,783.56 $6.31 $293.59 $299.90 $1,483.66
56 $5.27 $1,488.93 $5.27 $294.63 $299.90 $1,189.03
57 $4.22 $1,193.25 $4.22 $295.68 $299.90 $893.35
58 $3.17 $896.52 $3.17 $296.73 $299.90 $596.62
59 $2.12 $598.74 $2.12 $297.78 $299.90 $298.84
60 $1.06 $299.90 $1.06 $298.84 $299.90 $0.00
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Appendix F:
Present Worth Calculations

2011 Mazda CX-9 (Current Car):

EOY CF
0 -2720
1 -2120
2 -4320
3 -2720
4 -4320
5 5352

PW: ($10,842.33)

2016 Mazda CX-9 (New Version) Lump Sum:

EOY CF
0 -28021
1 -1770
2 -1770
3 -4570
4 -1770
5 22423

PW: ($15,529.51)

2016 Mazda 6 (New Class) Lump Sum:

EOY CF
0 -16181
1 -1320
2 -1320
3 -4120
4 -1320
5 12507

PW: ($11,778.51)
 Summer I 2016
Northeastern University Madison Goldstein
College of Engineering Page 19 of 23
EMGT 6225 Project Report

2016 Mazda CX-9 (New Version) Financed:

End of
Month CF
0 0.00
1 -519.34
2 -519.34
3 -519.34
4 -519.34
5 -519.34
6 -519.34
7 -519.34
8 -519.34
9 -519.34
10 -519.34
11 -2289.34
12 -519.34
13 -519.34
14 -519.34
15 -519.34
16 -519.34
17 -519.34
18 -519.34
19 -519.34
20 -519.34
21 -519.34
22 -519.34
23 -519.34
24 -2289.34
25 -519.34
26 -519.34
27 -519.34
28 -519.34
29 -519.34
30 -519.34
31 -519.34
32 -519.34
33 -519.34
34 -519.34
35 -519.34
36 -5089.34
37 -519.34
 Summer I 2016
Northeastern University Madison Goldstein
College of Engineering Page 20 of 23
EMGT 6225 Project Report

38 -519.34
39 -519.34
40 -519.34
41 -519.34
42 -519.34
43 -519.34
44 -519.34
45 -519.34
46 -519.34
47 -519.34
48 -2289.34
49 -519.34
50 -519.34
51 -519.34
52 -519.34
53 -519.34
54 -519.34
55 -519.34
56 -519.34
57 -519.34
58 -519.34
59 -519.34
60 21903.66

PW: ($18,621.76)
 Summer I 2016
Northeastern University Madison Goldstein
College of Engineering Page 21 of 23
EMGT 6225 Project Report

2016 Mazda 6 (New Class) Financed:

End of
Month CF
0 0.00
1 -299.90
2 -299.90
3 -299.90
4 -299.90
5 -299.90
6 -299.90
7 -299.90
8 -299.90
9 -299.90
10 -299.90
11 -299.90
12 -1619.90
13 -299.90
14 -299.90
15 -299.90
16 -299.90
17 -299.90
18 -299.90
19 -299.90
20 -299.90
21 -299.90
22 -299.90
23 -299.90
24 -1619.90
25 -299.90
26 -299.90
27 -299.90
28 -299.90
29 -299.90
30 -299.90
31 -299.90
32 -299.90
33 -299.90
34 -299.90
35 -299.90
36 -4419.90
37 -299.90
 Summer I 2016
Northeastern University Madison Goldstein
College of Engineering Page 22 of 23
EMGT 6225 Project Report

38 -299.90
39 -299.90
40 -299.90
41 -299.90
42 -299.90
43 -299.90
44 -299.90
45 -299.90
46 -299.90
47 -299.90
48 -1619.90
49 -299.90
50 -299.90
51 -299.90
52 -299.90
53 -299.90
54 -299.90
55 -299.90
56 -299.90
57 -299.90
58 -299.90
59 -299.90
60 12207.10

PW: ($13,564.11)
 Summer I 2016
Northeastern University Madison Goldstein
College of Engineering Page 23 of 23
EMGT 6225 Project Report

References
[1] Bankrate, Inc. (2016). Current Auto Loan Interest Rates. Retrieved from Bankrate:
http://www.bankrate.com

[2] Edmunds.com. (2016). Retrieved from Edmunds.com: http://www.edmunds.com

[3] GOBankingRates. (2016). What Is The Average Savings Account Interest Rate? Retrieved from
GOBankingRates: http://www.gobankingrates.com

[4] Mazda North American Operations. (2016). Build A Vehicle. Retrieved from Mazda USA:
http://www.mazdausa.com

[5] U.S. Department of Energy. (2016). Retrieved from FuelEconomy.gov: http://fueleconomy.gov