Using the Present-Value Table from Chapter 13-A Appendix on page 141, record the present value factor at 10% for each year and compute the present value cost of owning and the present value of leasing. Then, answer the following question:

• Which alternative is more desirable at this interest rate of 10%?

For the present value, round to the nearest whole number.

Cost of Owning- Anywhere Clinic- Comparative Present Value

For-Profit Cost of Owning:	Year 0	Year 1	Year 2	Year 3	Year 4	Year 5
Net Cash Flow	(58,750)	2,500	2,500	2,500	2,500	5,000
Present value factor
Present value answers =
Present value cost of owning =

Cost of Leasing - Comparative Present Value

For-Profit Cost of Leasing:	Year 0	Year 1	Year 2	Year 3	Year 4	Year 5
Net Cash Flow	(10,250)	(10,250)	(10,250)	(10,250)	(10,250)	---
Present value factor
Present value answers =
Present value cost of leasing =

Value of $1.00)

Present-Value Table from Chapter 13-A Appendix

Year	1%	2%	3%	4%	5%	6%	7%	8%	9%	10%
1	0.9901	0.9804	0.9709	0.9615	0.9524	0.9434	0.9346	0.9259	0.9174	0.9091
2	0.9803	0.9613	0.9426	0.9246	0.9070	0.8900	0.8734	0.8573	0.8417	0.8264
3	0.9706	0.9423	0.9151	0.8890	0.8638	0.8396	0.8163	0.7938	0.7722	0.7513
4	0.9610	0.9238	0.8885	0.8548	0.8227	0.7921	0.7629	0.7350	0.7084	0.6830
5	0.9515	0.9057	0.8626	0.8219	0.7835	0.7473	0.7130	0.6806	0.6499	0.6209
6	0.9420	0.8880	0.8375	0.7903	0.7462	0.7050	0.6663	0.6302	0.5963	0.5645
7	0.9327	0.8706	0.8131	0.7599	0.7107	0.6651	0.6227	0.5835	0.5470	0.5132
8	0.9235	0.8535	0.7894	0.7307	0.6768	0.6274	0.5820	0.5403	0.5019	0.4665
9	0.9143	0.8368	0.7664	0.7026	0.6446	0.5919	0.5439	0.5002	0.4604	0.4241
10	0.9053	0.8203	0.7441	0.6756	0.6139	0.5584	0.5083	0.4632	0.4224	0.3855
11	0.8963	0.8043	0.7224	0.6496	0.5847	0.5268	0.4751	0.4289	0.3875	0.3505
12	0.8874	0.7885	0.7014	0.6246	0.5568	0.4970	0.4440	0.3971	0.3555	0.3186
13	0.8787	0.7730	0.6810	0.6006	0.5303	0.4688	0.4150	0.3677	0.3262	0.2987
14	0.8700	0.7579	0.6611	0.5775	0.5051	0.4423	0.3878	0.3405	0.2992	0.2633
15	0.8613	0.7430	0.6419	0.5553	0.4810	0.4173	0.3624	0.3152	0.2745	0.2394
16	0.8528	0.7284	0.6232	0.5339	0.4581	0.3936	0.3387	0.2919	0.2519	0.2176
17	0.8444	0.7142	0.6050	0.5134	0.4363	0.3714	0.3166	0.2703	0.2311	0.1978
18	0.8360	0.7002	0.5874	0.4936	0.4155	0.3503	0.2959	0.2502	0.2120	0.1799
19	0.8277	0.6864	0.5703	0.4746	0.3957	0.3305	0.2765	0.2317	0.1945	0.1635
20	0.8195	0.6730	0.5537	0.4564	0.3769	0.3118	0.2584	0.2145	0.1784	0.1486
21	0.8114	0.6598	0.5375	0.4388	0.3589	0.2942	0.2415	0.1987	0.1637	0.1351
22	0.8034	0.6468	0.5219	0.4220	0.3418	0.2775	0.2257	0.1839	0.1502	0.1228
23	0.7954	0.6342	0.5067	0.4057	0.3256	0.2618	0.2109	0.1703	0.1378	0.1117
24	0.7876	0.6217	0.4919	0.3901	0.3101	0.2470	0.1971	0.1577	0.1264	0.1015
25	0.7798	0.6095	0.4776	0.3751	0.2953	0.2330	0.1842	0.1460	0.1160	0.0923
26	0.7720	0.5976	0.4637	0.3607	0.2812	0.2198	0.1722	0.1352	0.1064	0.0839
27	0.7644	0.5859	0.4502	0.3468	0.2678	0.2074	0.1609	0.1252	0.0976	0.0763
28	0.7568	0.5744	0.4371	0.3335	0.2552	0.1956	0.1504	0.1159	0.0895	0.0693
29	0.7493	0.5631	0.4243	0.3207	0.2429	0.1846	0.1406	0.1073	0.0822	0.0630
30	0.7419	0.5521	0.4120	0.3083	0.2314	0.1741	0.1314	0.0994	0.0754	0.0573

Year	11%	12%	13%	14%	15%	16%	17%	18%	19%	20%
1	0.9009	0.8929	0.8850	0.8772	0.8696	0.8621	0.8547	0.8475	0.8403	0.8333
2	0.8116	0.7972	0.7831	0.7695	0.7561	0.7432	0.7305	0.7182	0.7062	0.6944
3	0.7312	0.7118	0.6913	0.6750	0.6575	0.6407	0.6244	0.6086	0.5934	0.5787
4	0.6587	0.6355	0.6133	0.5921	0.5718	0.5523	0.5337	0.5158	0.4987	0.4823
5	0.5935	0.5674	0.5428	0.5194	0.4972	0.4761	0.4561	0.4371	0.4190	0.4019
6	0.5346	0.5066	0.4803	0.4556	0.4323	0.4104	0.3898	0.3704	0.3521	0.3349
7	0.4817	0.4523	0.4251	0.3996	0.3759	0.3538	0.3332	0.3139	0.2959	0.2791
8	0.4339	0.4039	0.3762	0.3506	0.3269	0.3050	0.2848	0.2660	0.2487	0.2326
9	0.3909	0.3606	0.3329	0.3075	0.2843	0.2630	0.2434	0.2255	0.2090	0.1938
10	0.3522	0.3220	0.2946	0.2697	0.2472	0.2267	0.2080	0.1911	0.1756	0.1615
11	0.3173	0.2875	0.2607	0.2366	0.2149	0.1954	0.1778	0.1619	0.1476	0.1346
12	0.2858	0.2567	0.2307	0.2076	0.1869	0.1685	0.1520	0.1372	0.1240	0.1122
13	0.2575	0.2292	0.2042	0.1821	0.1625	0.1452	0.1299	0.1163	0.1042	0.0935
14	0.2320	0.2046	0.1807	0.1597	0.1413	0.1252	0.1110	0.0985	0.0876	0.0779
15	0.2090	0.1827	0.1599	0.1401	0.1229	0.1079	0.0949	0.0835	0.0736	0.0649
16	0.1883	0.1631	0.1415	0.1229	0.1069	0.0930	0.0811	0.0708	0.0618	0.0541
17	0.1696	0.1456	0.1252	0.1078	0.0929	0.0802	0.0693	0.0600	0.0520	0.0451
18	0.1528	0.1300	0.1108	0.0946	0.0808	0.0691	0.0592	0.0508	0.0437	0.0376
19	0.1377	0.1161	0.0981	0.0829	0.0703	0.0596	0.0506	0.0431	0.0367	0.0313
20	0.1240	0.1037	0.0868	0.0728	0.0611	0.0514	0.0433	0.0365	0.0308	0.0261
21	0.1117	0.0926	0.0768	0.0638	0.0531	0.0443	0.0370	0.0309	0.0259	0.0217
22	0.1007	0.0826	0.0680	0.0560	0.0462	0.0382	0.0316	0.0262	0.0218	0.0181
23	0.0907	0.0738	0.0601	0.0491	0.0402	0.0329	0.0270	0.0222	0.0183	0.0151
24	0.0817	0.0659	0.0532	0.0431	0.0349	0.0284	0.0231	0.0188	0.0154	0.0126
25	0.0736	0.0588	0.0471	0.0378	0.0304	0.0245	0.0197	0.0160	0.0129	0.0105
26	0.0663	0.0525	0.0417	0.0331	0.0264	0.0211	0.0169	0.0135	0.0109	0.0087
27	0.0597	0.0469	0.0369	0.0291	0.0230	0.0182	0.0144	0.0115	0.0091	0.0073
28	0.0538	0.0419	0.0326	0.0255	0.0200	0.0157	0.0123	0.0097	0.0077	0.0061
29	0.0485	0.0374	0.0289	0.0224	0.0174	0.0135	0.0105	0.0082	0.0064	0.0051
30	0.0437	0.0334	0.0256	0.0196	0.0151	0.0116	0.0090	0.0070	0.0054	0.0042