Cost of OwningAnywhere ClinicComparative Present Value For-Profit Cost of Owning: ...

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Cost of OwningAnywhere ClinicComparative Present Value

For-Profit Cost of Owning:

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Net Cash Flow

(48,750)

2,500

2,500

2,500

2,500

5,000

Present value factor

Present value answers =

Present value cost of owning =

Cost of LeasingAnywhere ClinicComparative Present Value

For-Profit Cost of Leasing:

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Net Cash Flow

(8,250)

(8,250)

(8,250)

(8,250)

(8,250)

Present value factor

Present value answers =

Present value cost of leasing =

Record the preset value factor at 10% for each year and compute the preset value cost of owning and the preset value of leasing. Which alternative is more desirable at this rate? do you think your answer would change if the interest rate was 6% instead of 10%

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