HWWeek5 - P 6-10 Purchase Cost Down Payment Per Year Useful...

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P 6-10 Purchase Cost $1,850,000.00 Year: Down Payment $(400,000.00) Salvage Value: Per Year $350,000.00 Payment: Useful Life 12 $400,000.00 Down Payment: Salvige Value $500,000.00 Tax: Property Tax $40,000.00 Insurance: Insurance $27,000.00 Other: Other $16,000.00 Total: Cost of Capital: 10% $2,566,161.32 $565,536.42 Present value of Loan payments: $1,326,775.37 Total: $4,458,473.11 Lease Cost of Capital: 10% Year: Deposit (beginning) $(100,000.00) Lease: Period: 12 NPV: Rent Present value: $2,023,666.47 ($1,810,730.35) Present value of the deposit: $31,863.08 Total: $2,055,529.55 Present value of building after 12 years: Present value of Tas, insurance and other:
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1 2 3 4 5 6 $(350,000.00) $(350,000.00) $(350,000.00) $(350,000.00) $(350,000.00) $(400,000.00) $(40,000.00) $(40,000.00) $(40,000.00) $(40,000.00) $(40,000.00) $(40,000.00) $(27,000.00) $(27,000.00) $(27,000.00) $(27,000.00) $(27,000.00) $(27,000.00) $(16,000.00) $(16,000.00) $(16,000.00) $(16,000.00) $(16,000.00) $(16,000.00)
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This note was uploaded on 01/13/2011 for the course ACCT AC 550 taught by Professor George during the Spring '10 term at DeVry Chicago.

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HWWeek5 - P 6-10 Purchase Cost Down Payment Per Year Useful...

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