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Fritz: All Fritz
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FINACIAL
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FINPLAN.LZH
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PLAN3.CHP
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1992-11-06
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#EF
#T15,4,LEASE, RENT, OR BUY?
#C3,R4
CHOOSING THE BEST FINANCE METHOD
It is possible to obtain many items -- automobiles, office furniture and
equipment, household furniture, personal computers -- to name just a few--
in any one of the following ways: lease, rent, or buy.
#D3
The net cost of the item will depend on which method was used to finance its
acquisition. From a financial viewpoint, ~W~Ithe best deal~N is that which
results in the ~W~Ileast net cost.~N
#D3
For any sets of terms and conditions, the program in THE FINANCIAL PLANNER
can quickly determine which financing method is best. It does this by calc-
ulating the "Present Value" of all the costs associated with each method.
The method with the least "Present Value"is the least expensive method.
#D5
#HS,1,19,80,21,0,3
~Z~c(The "Present Value" can be thought of as that amount of money which, if you
invested it now, together with its earnings, would provide just enough cash
to make all the necessary payments throughout the useful life of the item.)~N
You can see an example of these calculations by running the program using the
data values displayed when the program is loaded.
#WP
#X