Table 1: Lease Term: 36 Months Lease Payment: $68,742.10 Purchase Price: $2,000,000.00 Quite often, analysts are provided leasing information by the leasing company. Hospitals may choose to purchase equipment outright or acquire equipment using a lease. Leases are generally considered operating or capital leases under current accounting rules. Hospitals may purchase equipment outright if they have sufficient capital (money that can be used to purchase equipment of significant amount usually greater than $5,000). Otherwise, they may decide that if the interest rate of payments being charged is lower than their internal cost of capital (debt financing, equity financing, etc.}, they may utilize the lease directly from the equipment seller. Page 2 of