Lease VS Purchase 25 yrs

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					                  Diesel Boat - Lease vs Purchase (for 25 yrs)
Useful Life :               25 yrs
After-tax Discount Rate :   10%
Income Tax Rate :           45%

                            Year, t                                               0               1            2             3             4
                            Lease :
(1)                            Lease/Rent Payments                                 0   -222,235.00    -222,235.00   -222,235.00   -222,235.00
(2)                            Tax Benefit                                         0    100,005.75     100,005.75    100,005.75    100,005.75
(3) = (1)+(2)                  Total                                               0   -122,229.25    -122,229.25   -122,229.25   -122,229.25
                            Discounted CF Lease                                 0.00   -111,117.50    -101,015.91    -91,832.64    -83,484.22
                                                              NPV of CF Lease                -939,199.57

                            Year, t                                               0               1            2             3             4
                            Purchase :
(4)                            Cost                                    -1,365,000                0              0            0             0
(5)                            Tax Shield from Depreciation                      0          24,570         24,570       24,570        24,570
(6) = (4)+(5)                  Total                                   -1,365,000           24,570         24,570       24,570        24,570
                            Discounted CF Purchase                  -1,365,000.00        22,336.36      20,305.79    18,459.80     16,781.64
                                                              NPV of CF Purchase            -1,141,977.13

(7) = (3) - (6)             CF Lease - CF Purchase                      1,365,000         -146,799       -146,799      -146,799      -146,799
(8)                         Discounted CF                            1,365,000.00      -133,453.86    -121,321.69   -110,292.45   -100,265.86

                                                                  NPV of CF Lease - CF Purchase             202,777.56
                  Diesel Boat - Lease vs Purchase (for 25 yrs)
Useful Life :               25 yrs
After-tax Discount Rate :   10%
Income Tax Rate :           45%

                            Year, t                                    5             6             7             8             9            10
                            Lease :
(1)                            Lease/Rent Payments            -222,235.00   -222,235.00   -222,235.00   -222,235.00   -222,235.00   -222,235.00
(2)                            Tax Benefit                     100,005.75    100,005.75    100,005.75    100,005.75    100,005.75    100,005.75
(3) = (1)+(2)                  Total                          -122,229.25   -122,229.25   -122,229.25   -122,229.25   -122,229.25   -122,229.25
                            Discounted CF Lease                -75,894.75    -68,995.23    -62,722.93    -57,020.85    -51,837.13    -47,124.67


                            Year, t                                    5             6             7             8             9            10
                            Purchase :
(4)                            Cost                                    0             0             0             0             0             0
(5)                            Tax Shield from Depreciation       24,570        24,570        24,570        24,570        24,570        24,570
(6) = (4)+(5)                  Total                              24,570        24,570        24,570        24,570        24,570        24,570
                            Discounted CF Purchase             15,256.04     13,869.12     12,608.29     11,462.09     10,420.08      9,472.80


(7) = (3) - (6)             CF Lease - CF Purchase               -146,799      -146,799      -146,799      -146,799      -146,799      -146,799
(8)                         Discounted CF                      -91,150.78    -82,864.35    -75,331.23    -68,482.93    -62,257.21    -56,597.47
                  Diesel Boat - Lease vs Purchase (for 25 yrs)
Useful Life :               25 yrs
After-tax Discount Rate :   10%
Income Tax Rate :           45%

                            Year, t                                   11            12            13            14            15           16
                            Lease :
(1)                            Lease/Rent Payments            -222,235.00   -222,235.00   -222,235.00   -222,235.00   -222,235.00   -11,760.00
(2)                            Tax Benefit                     100,005.75    100,005.75    100,005.75    100,005.75    100,005.75     5,292.00
(3) = (1)+(2)                  Total                          -122,229.25   -122,229.25   -122,229.25   -122,229.25   -122,229.25    -6,468.00
                            Discounted CF Lease                -42,840.61    -38,946.01    -35,405.46    -32,186.78    -29,260.71    -1,407.63


                            Year, t                                   11            12            13            14            15           16
                            Purchase :
(4)                            Cost                                    0             0             0             0             0            0
(5)                            Tax Shield from Depreciation       24,570        24,570        24,570        24,570        24,570       24,570
(6) = (4)+(5)                  Total                              24,570        24,570        24,570        24,570        24,570       24,570
                            Discounted CF Purchase              8,611.64      7,828.76      7,117.05      6,470.05      5,881.86     5,347.15


(7) = (3) - (6)             CF Lease - CF Purchase               -146,799      -146,799      -146,799      -146,799      -146,799      -31,038
(8)                         Discounted CF                      -51,452.24    -46,774.77    -42,522.51    -38,656.83    -35,142.57    -6,754.77
                  Diesel Boat - Lease vs Purchase (for 25 yrs)
Useful Life :               25 yrs
After-tax Discount Rate :   10%
Income Tax Rate :           45%

                            Year, t                                  17           18           19           20           21           22           23
                            Lease :
(1)                            Lease/Rent Payments            -11,760.00   -11,760.00   -11,760.00   -11,760.00   -11,760.00   -11,760.00   -11,760.00
(2)                            Tax Benefit                      5,292.00     5,292.00     5,292.00     5,292.00     5,292.00     5,292.00     5,292.00
(3) = (1)+(2)                  Total                           -6,468.00    -6,468.00    -6,468.00    -6,468.00    -6,468.00    -6,468.00    -6,468.00
                            Discounted CF Lease                -1,279.66    -1,163.33    -1,057.57      -961.43      -874.02      -794.57      -722.33


                            Year, t                                  17           18           19           20           21           22           23
                            Purchase :
(4)                            Cost                                   0            0            0            0            0            0            0
(5)                            Tax Shield from Depreciation      24,570       24,570       24,570       24,570       24,570       24,570       24,570
(6) = (4)+(5)                  Total                             24,570       24,570       24,570       24,570       24,570       24,570       24,570
                            Discounted CF Purchase             4,861.04     4,419.13     4,017.39     3,652.17     3,320.16     3,018.33     2,743.93


(7) = (3) - (6)             CF Lease - CF Purchase               -31,038      -31,038      -31,038      -31,038      -31,038      -31,038      -31,038
(8)                         Discounted CF                      -6,140.70    -5,582.46    -5,074.96    -4,613.60    -4,194.18    -3,812.89    -3,466.27
                  Diesel Boat - Lease vs Purchase (for 25 yrs)
Useful Life :               25 yrs
After-tax Discount Rate :   10%
Income Tax Rate :           45%

                            Year, t                                  24           25
                            Lease :
(1)                            Lease/Rent Payments            -11,760.00   -11,760.00
(2)                            Tax Benefit                      5,292.00     5,292.00
(3) = (1)+(2)                  Total                           -6,468.00    -6,468.00
                            Discounted CF Lease                  -656.67      -596.97


                            Year, t                                  24           25
                            Purchase :
(4)                            Cost                                   0            0
(5)                            Tax Shield from Depreciation      24,570       24,570
(6) = (4)+(5)                  Total                             24,570       24,570
                            Discounted CF Purchase             2,494.48     2,267.71


(7) = (3) - (6)             CF Lease - CF Purchase               -31,038      -31,038
(8)                         Discounted CF                      -3,151.15    -2,864.68
                  Diesel Boat - Lease vs Purchase (for 20 yrs)
Useful Life :               25 yrs
After-tax Discount Rate :   10%
Income Tax Rate :           45%

                            Year, t                                             0                1            2             3             4             5
                            Lease :
(1)                            Lease/Rent Payments                              0    -222,235.00    -222,235.00    -222,235.00   -222,235.00   -222,235.00
(2)                            Tax Benefit                                      0     100,005.75     100,005.75     100,005.75    100,005.75    100,005.75
(3) = (1)+(2)                  Total                                            0    -122,229.25    -122,229.25    -122,229.25   -122,229.25   -122,229.25
                            Discounted CF Lease                                 0    -111,117.50    -101,015.91     -91,832.64    -83,484.22    -75,894.75
                                                              NPV of CF Lease              -935,555.00

                            Year, t                                             0                1            2             3             4             5
                            Purchase :
(4)                            Cost                                   -1,365,000               0              0              0            0             0
(5)                            Tax Shield from Depreciation                    0          24,570         24,570         24,570       24,570        24,570
                               After-tax Proceeds from
(6)                            Sale of Boat
                               Proceeds from
(7)                           Sale of Remaining Inventory
(8) = (4)+(5)+(6)+(7)          Total                                 -1,365,000           24,570         24,570        24,570        24,570        24,570
                            Discounted CF Purchase                -1,365,000.00        22,336.36      20,305.79     18,459.80     16,781.64     15,256.04
                                                              NPV of CF Purchase          -1,102,703.94

(9) = (3) - (8)             CF Lease - CF Purchase                    1,365,000         -146,799        -146,799      -146,799      -146,799      -146,799
(10)                        Discounted CF                          1,365,000.00      -133,453.86     -121,321.69   -110,292.45   -100,265.86    -91,150.78

                                                                 NPV of CF Lease - CF Purchase             167,148.94
                  Diesel Boat - Lease vs Purchase (for 20 yrs)
Useful Life :               25 yrs
After-tax Discount Rate :   10%
Income Tax Rate :           45%

                            Year, t                                    6             7             8             9            10            11
                            Lease :
(1)                            Lease/Rent Payments            -222,235.00   -222,235.00   -222,235.00   -222,235.00   -222,235.00   -222,235.00
(2)                            Tax Benefit                     100,005.75    100,005.75    100,005.75    100,005.75    100,005.75    100,005.75
(3) = (1)+(2)                  Total                          -122,229.25   -122,229.25   -122,229.25   -122,229.25   -122,229.25   -122,229.25
                            Discounted CF Lease                -68,995.23    -62,722.93    -57,020.85    -51,837.13    -47,124.67    -42,840.61


                            Year, t                                    6             7             8             9            10            11
                            Purchase :
(4)                            Cost                                    0             0             0             0             0             0
(5)                            Tax Shield from Depreciation       24,570        24,570        24,570        24,570        24,570        24,570
                               After-tax Proceeds from
(6)                            Sale of Boat
                               Proceeds from
(7)                           Sale of Remaining Inventory
(8) = (4)+(5)+(6)+(7)          Total                              24,570        24,570        24,570        24,570        24,570        24,570
                            Discounted CF Purchase             13,869.12     12,608.29     11,462.09     10,420.08      9,472.80      8,611.64


(9) = (3) - (8)             CF Lease - CF Purchase               -146,799      -146,799      -146,799      -146,799      -146,799      -146,799
(10)                        Discounted CF                      -82,864.35    -75,331.23    -68,482.93    -62,257.21    -56,597.47    -51,452.24
                  Diesel Boat - Lease vs Purchase (for 20 yrs)
Useful Life :               25 yrs
After-tax Discount Rate :   10%
Income Tax Rate :           45%

                            Year, t                                   12            13            14            15           16           17           18
                            Lease :
(1)                            Lease/Rent Payments            -222,235.00   -222,235.00   -222,235.00   -222,235.00   -11,760.00   -11,760.00   -11,760.00
(2)                            Tax Benefit                     100,005.75    100,005.75    100,005.75    100,005.75     5,292.00     5,292.00     5,292.00
(3) = (1)+(2)                  Total                          -122,229.25   -122,229.25   -122,229.25   -122,229.25    -6,468.00    -6,468.00    -6,468.00
                            Discounted CF Lease                -38,946.01    -35,405.46    -32,186.78    -29,260.71    -1,407.63    -1,279.66    -1,163.33


                            Year, t                                   12            13            14            15           16           17           18
                            Purchase :
(4)                            Cost                                    0             0             0             0            0            0            0
(5)                            Tax Shield from Depreciation       24,570        24,570        24,570        24,570       24,570       24,570       24,570
                               After-tax Proceeds from
(6)                            Sale of Boat
                               Proceeds from
(7)                           Sale of Remaining Inventory
(8) = (4)+(5)+(6)+(7)          Total                               24,570       24,570        24,570        24,570       24,570       24,570       24,570
                            Discounted CF Purchase               7,828.76     7,117.05      6,470.05      5,881.86     5,347.15     4,861.04     4,419.13


(9) = (3) - (8)             CF Lease - CF Purchase               -146,799      -146,799      -146,799      -146,799      -31,038      -31,038      -31,038
(10)                        Discounted CF                      -46,774.77    -42,522.51    -38,656.83    -35,142.57    -6,754.77    -6,140.70    -5,582.46
                  Diesel Boat - Lease vs Purchase (for 20 yrs)
Useful Life :               25 yrs
After-tax Discount Rate :   10%
Income Tax Rate :           45%

                            Year, t                                  19           20
                            Lease :
(1)                            Lease/Rent Payments            -11,760.00   -11,760.00
(2)                            Tax Benefit                      5,292.00     5,292.00
(3) = (1)+(2)                  Total                           -6,468.00    -6,468.00
                            Discounted CF Lease                -1,057.57      -961.43


                            Year, t                                  19           20
                            Purchase :
(4)                            Cost                                   0            0
(5)                            Tax Shield from Depreciation      24,570       24,570
                               After-tax Proceeds from
(6)                            Sale of Boat                                  199,850
                               Proceeds from
(7)                           Sale of Remaining Inventory                   157,500
(8) = (4)+(5)+(6)+(7)          Total                             24,570     381,920
                            Discounted CF Purchase             4,017.39    56,769.97


(9) = (3) - (8)             CF Lease - CF Purchase               -31,038     -388,388
(10)                        Discounted CF                      -5,074.96   -57,731.40