The cost to purchase the CT scanis $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 Payment | Interest 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 | |||||
| Trade Value $130,000 | 0.621 | |||||
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 | ||
