One of the many applications of the PVC analysis and annualized costing is their use in making
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One of the many applications of the PVC analysis and annualized costing is their use in making a so-called lease or buy decision. Suppose that the purchase price of a heavy-duty printer is $19,000, with an annual maintenance cost of $200. And suppose the same printer can be leased for an annual cost of $2,000, with an annual maintenance cost of $300.
Consider a fifteen-year term for the estimation and a 10 percent annual discount rate. Would it be more cost-efficient to lease or buy? (Explain explicitly any assumption you make.)
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Financial Management In The Public Sector Tools Applications And Cases
ISBN: 9780765636898
3rd Edition
Authors: Xiaohu Wang
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