I was hoping you could help me with some questions I had on my Case Study. The questions are very difficult for me to answer and I really needed some help. The questions include finding the interest rate using time value money, determining if this is a good interest rate to lease the equipment, determining if it is a capital lease or operating lease, and the advantage/disadvantage of capital or operating lease. The questions are below: Table 1: Lease Term:36 Months Lease Payment:$68,742.10 Purchase Price: $1,900,000.00

1. What is the annual rate of interest being charged to the hospital? The total interest paid over the entire term of the lease? 2. Given this rate of interest, give some reasons on why or why not the hospital should accept this lease contract. Is this a good deal for the lessee based on the rates? Support your answer! 3. Assume that the hospital has a current borrowing rate of 3.75% is this a capital lease or operating lease? Please explain each of the criteria and your conclusion based on ASC 840. Assume a 7 year life to the equipment, that there is no transfer of ownership to the lessee at the end of the lease term, and that there is no bargain purchase option. 4. Why would a hospital care whether it was a capital lease or an operating lease? When would one be an advantage over the other?

Thank you for your help.