Chap 01 - Assignment Exercise 1-1 (Word)

Assignment 21-1b: 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 Appendix, 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 were six percent instead of ten percent?

Cost of Owning - Anywhere Clinic - Comparative Present Value

Chap 01 - Assignment Exercise 1-1 (Word)

Chap 01 - Assignment Exercise 1-1 (Word) For-Profit Cost of Owning:	Year 0	Year 1	Year 2	Year 3	Year4	Year 5
Net Cash Flow	(48,750)	Chap 01 - Assignment Exercise 1-1 (Word) 2,500	2,500	2,500	2,500	Chap 01 - Assignment Exercise 1-1 (Word) 5,000
Present value factor
Present value answers =
Present value cost of owning =

Chap 01 - Assignment Exercise 1-1 (Word)

Cost of Leasing- Anywhere Clinic - Comparative Present Value

For-Profit Cost of Owning:	Year 0	Year 1	Year 2	Year 3	Year4	Year 5
Net Cash Flow	Chap 01 - Assignment Exercise 1-1 (Word) (8,250)	Chap 01 - Assignment Exercise 1-1 (Word) (8,250)	Chap 01 - Assignment Exercise 1-1 (Word) (8,250) Chap 01 - Assignment Exercise 1-1 (Word)	Chap 01 - Assignment Exercise 1-1 (Word) (8,250)	Chap 01 - Assignment Exercise 1-1 (Word) (8,250)	---
Present value factor						---
Present value answers =
Present value cost of owning =

Chap 01 - Assignment Exercise 1-1 (Word)

Assignment 22-1

Required:

Locate several health care organizations? mission, value and vision statements. Use public sources with no privacy concerns.

Then fit the statements you have discovered into the chapter?s categories of ?recognizing a special status or focus within the statements?; financial emphasis within the statements?; and/or ?relaying the message?.