• Location and equipment represent the fixed cost for creating a trauma center. Financing the creation of a medical resource comes with varying costs, including the location and the equipment involved.
• Review the chart below about multiple options for financing the trauma center:

Location Costs (based on 1500 sq.ft.)
Buy	Lease
$250,000 purchase price with a 4.5% interest over 25 years, with 20% of the total cost as the down payment	$3,000 a month for a 10-year lease with a $25,000 deposit
$250,000 purchase price with a 6% interest over 15 years, with 30% of the total cost as the down payment	$3,225 a month for a 5-year lease with a $15,000 deposit

Equipment
Name and Quantity	Cost to Rent (per month)	Cost to Purchase
1 Mobile X-ray unit	$7,000	$700,000
2 Anaesthetic machines	$8,000	$800,000
2 Defibrillators	$800	$80,000
4 ECG Monitors	$2,000	$200,000
1 Laryngoscope	$400	$40,000
4 Vital Signs Monitors	$120	$12,000

• Imagine that you have a budget of $6,000,000 for the initial set up of the center. Create a financial plan on how you would utilize this money to create the trauma center.
  • Would you lease or buy your space?
  • Would you buy or rent your equipment?
• Explain your reasoning for the decisions you made and why they make the most sense financially.