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Cost of Owning—Anywhere Clinic—Comparative Present Value For-Profit Cost of Owning: Year 0 Year 1 Year 2...

Cost of Owning—Anywhere Clinic—Comparative 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 Leasing—Anywhere Clinic—Comparative 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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jeff jeffy answered 1 year ago
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