FINANCIAL COMPARISON
PAYING CASH VS.LEASE FINANCING (FMV not to exceed 5%)
Term of Lease 60 Months

Paying Cash

LEASE FINANCING

Enter Your Equipment Cost ->

Equipment Cost

Loss of Income
Income accrued on principal (12% OVER 60 MONTHS)*

Monthly Lease Payment

Less 40% tax paid

Total Net Income lost

Total of all lease payments (2190 X 60)

Pre-Tax Cost of Equipment

Pre-Tax Cost of Equipment

Less Tax Savings
Depreciation of principal amount
@ 40%

Less Tax Savings
Monthly write-off of total
@ 40%

Post-Tax Cost of Equipment

Post-Tax Cost of Equipment

FMV Buyout
5% of principal**
(less tax savings)

Total Net Cost of Equipment

Total Net Cost of Equipment

Average Cost per Month

Average Cost per Month

Lessee Saves:

Per Month

Per Year

60 Month Term

* Source: Dun & Bradstreet,1998. D&B research shows that the average company receives a 12% return on every dollar of working capital that is re-invested. ** In most circumstances, we are able to cap the FMV buyout at not to exceed 5%