#8 chap 8(extra credit)

#8 chap 8(extra credit) - $142.50 812250 $64,980.00 3 20 3...

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March 28, 2011 Mr. Smith Yadira Hammer Assignment: #8 Application Exercise chp 8 Buy Assumption: Server cost 5000 Software cost 750 Depreciation Years 3 Capital % 0.02 Maintenance Percentage 0.03 Year Server Cost Software Cost Depreciation Salvage Value Maintenance 1 20 $100,000.00 $15,000.00 $38,333.33 230000% 0 $3,000.00 2 0 $- $- $38,333.33 0% 0 $- 3 20 $100,000.00 $15,000.00 $76,666.67 230000% 0 $3,000.00 4 0 $- $- $38,333.33 0% 0 $- 5 10 $50,000.00 $7,500.00 $57,500.00 115000% $50,000.00 $1,500.00 Totals Cost for yr. $250,000.00 $37,500.00 $95,833.33 575000% 50000 $7,500.00 Total spent buying 1-5yrs Lease Assumptions: Monthly Cost Yearly Cost 1 Year Lease Payment $415.00 $4,980.00 2 Year Lease Payment $335.00 $4,020.00 3 Year Lease Payment $285.00 $3,420.00 Year Server Leased Lease Term Discount 1 20 3 $285.00 $142.50 812250 $64,980.00 2 20 3 $285.00
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Unformatted text preview: $142.50 812250 $64,980.00 3 20 3 $285.00 $142.50 812250 $64,980.00 Servers Purchased Interest Expense Payment Per Unit Total Lease Payments Yearly total least payment March 28, 2011 Mr. Smith Yadira Hammer Assignment: #8 Application Exercise chp 8 4 20 2 $335.00 $167.50 1122250 $76,380.00 5 20 1 $415.00 $207.50 1722250 $94,620.00 Total spent leasing $365,940.00 The leasing option is cheaper with a $365,940 vs. $704,083 total payment! March 28, 2011 Mr. Smith Yadira Hammer Assignment: #8 Application Exercise chp 8 Totals $158,633.33 $38,333.33 $196,966.67 $38,333.33 $167,650.00 $257,500.00 $599,916.67 March 28, 2011 Mr. Smith Yadira Hammer Assignment: #8 Application Exercise chp 8...
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#8 chap 8(extra credit) - $142.50 812250 $64,980.00 3 20 3...

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