Assignment Exercise 211: Cost of Owning and Cost of Leasing Cost of owning and cost of leasing tables are reproduced below.

Template for Assignment Exercise 21-1 at 10%

STEP 1

Cost of Owning- Anywhere Clinic - Comparative Present Value

Hints		Year 0	Year 1	Year 2	Year 3	Year 4	Year 5
A	Net Cash Flow	(48,750)	2,500	2,500	2,500	2,500	5,000
B	Present value factor at 10% (page 135 in the OCR)	n/a
=A x B	Present Value for Each Year	(48,750)

Present value cost of owning = INSERT ANSWER HERE (the sum of all the yellow boxes)

STEP 2

Cost of Leasing- Anywhere Clinic - Comparative Present Value

Hints		Year 0	Year 1	Year 2	Year 3	Year 4	Year 5
A	Net Cash Flow	(8,250)	(8,250)	(8,250)	(8,250)	(8,250)	n/a
B	Present value factor at 10% (page 135 in the OCR)	n/a					n/a
=A x B	Present Value for Each Year	(8,250)					n/a

Present value cost of leasing = INSERT ANSWER HERE (the sum of all the yellow boxes)

STEP 3

Differential at 10% (cost of owning cost of leasing) = INSERT ANSWER HERE