The cost to purchase the CT scan is $1,300,000 at 10% (PV), with straight line depreciation...

Transcribed Image Text:

The cost to purchase the CT scan is $1,300,000 at 10% (PV), with straight line depreciation over 5 years. The trade-in value $130,000 at the end of its useful life. The maintenance expense equals $12,000 annually. The cost to lease the equipment is $26,000 per month for a period of 60 months, which includes all maintenance costs. The tables below provide the financial overview of the purchase and lease costs. Purchase Year Principle Interest Payment Payment Maintenance Expense Total Expense PV Factor at 10% PV Expense 1 0.909 2 0.826 3 0.751 4 0.683 5 0.621 0.621 Trade Value $130,000 Lease Year Lease Payment PV Factor at 10% PV Expense 1 0.909 2 0.826 3 0.751 4 0.683 5 0.621 The cost to purchase the CT scan is $1,300,000 at 10% (PV), with straight line depreciation over 5 years. The trade-in value $130,000 at the end of its useful life. The maintenance expense equals $12,000 annually. The cost to lease the equipment is $26,000 per month for a period of 60 months, which includes all maintenance costs. The tables below provide the financial overview of the purchase and lease costs. Purchase Year Principle Interest Payment Payment Maintenance Expense Total Expense PV Factor at 10% PV Expense 1 0.909 2 0.826 3 0.751 4 0.683 5 0.621 0.621 Trade Value $130,000 Lease Year Lease Payment PV Factor at 10% PV Expense 1 0.909 2 0.826 3 0.751 4 0.683 5 0.621