Assignment Exercise 21-1: Cost of Owning and Cost of Leasing (p. 504)

Please complete the exercise in Excel using the format provided in the text on page 504 and in the template provided above.

Please see the attached template file for help with this week's GHA. While the file is not in excel (because it is easier for you to read in Word), it provides step by step instructions for you to complete this week's assignment.

The important thing is for you to understand the key financial concepts that go into the decision to lease vs buy.

Submit your assignment using the link provided below.

Template for Assignment Exercise 21-1 at10% Template for Assignment Exercise 21-1 at 6% STEP 1 Cost of Owning- Anywhere Clinic Comparative Present Value STEP4 Cost of Owning- Anywhere Clinic Comparative Present Value value factor at Present Vislue fo the OCR) Ax B Present Value for Each (48, Present value cost of owning- INSERT ANSWER HERE (the sum of all the yellow boxes) 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 STEP5 Cost of Leasing- Anywhere Clinic Comparative Present Value pape 135 in he Year Yea Yewr Year3 ar Year ag 135 in the Present value cost of leasing -INSERT ANSWER HERE (the sum of all the yellow boxes) Each Yew STEP3 Determine the difference between the cost of owning and the cost of leasing at 10%. (cost of owning- cost of leasing)-INSERT ANSWER HERE At 10%, is it better to own or lease? INSERT ANSWER HERE Present value cost of leasing-INSERT ANSWER HERE (the sum of all the yellow boxes) STEP 6 Determine the difference between the cost of owning and the cost of leasing at 6%. (cost of owning- cost of leasing) INSERT ANSWER HERE At 6%, is it better to own or lease? INSERT ANSWER HERE Template for Assignment Exercise 21-1 at 6% STEP 4 Cost of Owning- Anywhere Clinic Comparative Present Value STEP 7 Explain why your answers to Step 3 and Step 6 are different. Does this mean that your decision about whether to lease or buy is impacted bv the interest/discount rate? Preave value achor at