+1443 776-2705 panelessays@gmail.com

The cost to purchase the CT scan is $1,300,000 at 10% (PV), with straight line depreciation over 5 years. The trade-in value $130,000 at the end of its useful life. The maintenance expense equals $12,000 annually.

The cost to lease the equipment is $26,000 per month for a period of 60 months, which includes all maintenance costs. The tables below provide the financial overview of the purchase and lease costs.

The cost to purchase the CT scan is $1,300,000 at 10% (PV), with straight line depreciation over 5 years. The trade-in value $130,000 at the end of its useful life. The maintenance expense equals $12,000 annually.

The cost to lease the equipment is $26,000 per month for a period of 60 months, which includes all maintenance costs. The tables below provide the financial overview of the purchase and lease costs.

Purchase

Year

Principle Payment

Interest Payment

Maintenance Expense

Total Expense

PV Factor at 10%

PV Expense

1

0.909

2

0.826

3

0.751

4

0.683

5

0.621

Trade Value $130,000

0.621

Lease

Year

Lease Payment

PV Factor at 10%

PV Expense

1

0.909

2

0.826

3

0.751

4

0.683

5

0.621