Year 0 1 2

Purchase(lease) 0
Purchase(Buy) 24300
Cash Outflow 24300
Expense(Lease) 14848 14848
Expense(Buy) 7648 8408
EBITDA Increase(Because expense is less in Buy) 7200 6440
Depreciation(Lease) 0 0
Depreciation(Buy) 4500 4500
Change in Depreciation 4500 4500
Change in EBIT(positive means net increae in EBIT) 2700 1940
Tax (Positive means loss of money) 1080 776
Net Income Change(Positive means increase) 1620 1164
Cash Flow(Adding Depreciation) 6120 5664
Discounted Cash Flow 5464.285714 4515.306122
Book Value in 5th Year 1800
Net Gain in selling equipment for 1800$ 0
Final NPV(Buy vs Lease positive means gain) 2454.036392
 3 4 5

14848 14848 14848

8408 8408 8408
6440 6440 6440
0 0 0
4500 4500 4500
4500 4500 4500
1940 1940 1940
776 776 776
1164 1164 1164 Salvage Value Added
5664 5664 5664 7464
4031.523324 3599.574396 3213.905711 4235.274051
1800