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Cost of Leasing

Cost of LeasingPaper details:
Instructions will be list below. Source will be Health Care Finance: Basic Tools for Nonfinancial Managers 3rd Edition , Baker

Complete Practice Exercise 23-I on page 400 and Assignment Exercise 23-1 on pages 400–401 in your course text

Practice Exercise 23—I: Cost of Leasing

A cost of leasing table is reproduced below.

Required

Using the appropriate table from the Chapter 12 Appendices, record the present value factor at 6% for each year and compute the present value cost of leasing:(See other information in the source that was given)

Cost of Leasing: Suburban Clinic—Comparative Present Value

Assignment Exercise 23–1: Cost of Owning and Cost of Leasing

Cost of owning and cost of leasing tables are reproduced below.

Required

Using the appropriate table from the Chapter 12 Appendices, record the present value factor at 10% for each year and compute the present value cost of owning and the present value of leasing. Which alternative is more desirable at this interest rate? Do you think your answer would change if the interest rate was six percent instead of ten percent?

Cost of Owning: Anywhere Clinic—Comparative Present Value

For-Profit Cost of Owning:

(see instruction in the source that was given.)

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