Buy or LeaseIn this assignment, you will complete a technical report about the financial consequences of hosting for companies like AirBnB, VRBO andTuro. The focus of the assignment is understanding the importance of depreciation and taxes in financial decision-making.Context:For example, A new car is the usually the second biggest purchase most of people make. Since many consumers must finance their new vehicle, the decision of whether to buy or lease can be confusing, especially for first-time buyers. What many buyers don’t realize it what happens at the end of the lease, when the typically have the option to purchase the car at a residual value agreed upon at the time of purchase.The difference between the purchase price and the residual value is called depreciation. If market value is greater than the residual value, then a sensible financial decision for the buyer is to purchase the leased vehicle at the end of the lease. If market value is less, then a sensible decision is to put the car back on the leaseholder.Also, there are important tax implications. When purchasing a car, buyers pay all the sales taxes up front. But in a lease, buyer typically pay taxes only on the monthly lease payments. The savings may be considerable.For sharing economy reports, we’re still interested in depreciation and taxes. For example, students examining Uber or Lyft should compute the allowable depreciation of their vehicles, and the tax consequences of reporting their driving income on Schedule C of their federal and state tax returns.Audience:As was the case with your previous report, it is important for you to keep an identifiable and realistic audience in mind. for this report you will have to imagine possible audiences that will benefit from your report and select your own specific audience. Audiences might vary in the following ways:Income LevelAgeCredit StandingSocioeconomic statusPurpose of Vehicle (ex: will they use the vehicle to commute to work?)Purpose:Using the above question as your initial guide, you will design and write your report in a manner that facilitates decision-making and subsequent action. Make a specific, actionable recommendation to your readers.Qualities of Effective Reports: Your reports are meant not only to demonstrate mastery of the concepts we’ve been learning in class but also to give you an opportunity to work on your writing.The following are factors of effective technical communication:Audience Awareness: Is your document easy to follow?Do you provide necessary transitions?Do you make sense of technical jargon for your audience? Is your document useful?b) Writing with Authority: Do you write from the persona of an expert? Are your claims sufficiently supported with sources? Does your document aim to meet professional standards? How credible and reliable are your sources?c) Professional Design: How well do you reference visuals? How well do you explain visuals? Are headers effectively used to separate sections of the report? Effective Organizationd) Context: Does the document reveal your awareness of today’s financial climate? Does your document respond to current local and national trends?Report Structure: Remember that your reports are supposed to follow a certain structure and include at least the following sections: Executive summary (less than one page) a) states the topic of the report b)outlines your approach to the task if applicable c) gives the most important findings of your research or investigation, or the key aspects of your design d) states the main outcomes or conclusions.Introduction: the background to the topic of your report to set your work in its broad context a) a clear statement of the purpose of the report, usually to present the results of your research, investigation, or design b) a clear statement of the aims of the project c) technical background necessary to understand the report — e.g. theory or assumptions d) a brief outline of the structure of the report if appropriate (this would not be necessary in a short report)Investigative method.Results and discussion (including data, sample calculations, sensitivity analyses, and graphical representation of the comparison)RecommendationsReferences Cited
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