End of

year

Lease
payment
0
1
2
3
4
5
6
7
8-

Total

Net cash
Tax saving outlay lease
lease

10,363.94
10,363.94
10,363.94
10,363.94
10,363.94
10,363.94
10,363.94
10,363.94

5,181.97
5,181.97
5,181.97
5,181.97
5,181.97
5,181.97
5,181.97
5,181.97
-

Discount
factor

5,181.97
5,181.97
5,181.97
5,181.97
5,181.97
5,181.97
5,181.97
5,181.97
-

lease

1
0.952
0.907
0.864
0.823
0.784
0.746
0.71
-

5,181.97
4,933.24
4,700.05
4,477.22
4,264.76
4,062.66
3,865.75
3,684.38
35,170.03

10,000.00
8,000.00
6,000.00
4,000.00
2,000.00
0.00
1

-2,000.00
-4,000.00

7,000.00
6,000.00
5,000.00
4,000.00
3,000.00
2,000.00
1,000.00
0.00
1

000.00

000.00

000.00

000.00

Payment

Principal
repayment

Interest

Outstanding
balance

15000

11,870.89

4500

7370.89

37629.11

11,870.89

3726.91

8107.98

11,870.89

2952.11

8918.78

11,870.89

2060.24

9810.66 10.791.69

11,870.89

1079.17 10.791.69

Depreciati
on

End of year

Tax savings - Net cash

purchase
flow-purchase

45000

6000

9000

6000

5250

6620.89

29521.13

6000

4881.46

6989.43

20602.35

6000

4476.06

7394.83

6000

4030.12

7840.77

6000

3539.59

8331.27

6000

3000

-3000

6000

3000

-3000

3000

-3000

Net cash outlay -6000

lease
Net cash flow-purchase

000.00
0.00
1

000.00

000.00

00

00

00

00
Tax saving - lease

00

Tax savings - purchase

00

00

00
1

-12000

10,000.00

Discount
factor

purchase
8,000.00
1

9000

0.952

5303.09

0.907

6339.41

0.864

6389.13

0.823

6452.95

0.784

6531.72

0.746

-2238

0.711

-2133

0.677

-2031

0.502

-6024
28,590.30

6,000.00
4,000.00

lease

purcha

2,000.00
0.00
1
-2,000.00
-4,000.00

lease
purchase