The owner of the Kwik Copy franchise has reviewed the option for the outright purchase of the Photocopier and decides to get a quote on leasing a Konica Photocopier.

Goal: To create an excel spreadsheet that calculates the viability of the leasing proposal against the outright purchase option above.

-Total price of the Photocopier $50,000, monthly repayments are set at $998.95 per month over 5 years

-The machine produces Photocopies at 45 pages per minute

-Based on the hours above include in Scenario 4 the price per Copy rates:

80% of the copy is Black and White@ 1 cent per copy

20% of the copy is Colour@ 7 cents per copy

-The annual operating expenses are included in the price per copy therefore these at $0.0

-Balloon payment of 25% at the end of 5 years

- Use the Straight-line method to calculate the estimated costs and profit of this option over 5 years

When you have finished your worksheet, answer the following question.

1. Based on your calculations, which finance option is the best for this company?

2. Format all cells appropriately. Save your work and upload to Google Classrooms