Lease versus Purchase Decision Cost of Purchasing

W9WORKSHEETWorksheet for the Lease versus Purchase Decision
   Cost of Purchasing  
 a.Agreed-upon purchase price 
 b.Down payment 
 c.Total loan payments (monthly loan payment  x ___ no. months) 
 d.Opportunity cost of down payment [line b x  
  (1 + foregone rate of return (number of years))] 
 e.Less: Expected market value of the car ar the end of the loan 
 f.Total cost of purchasing$0
   Cost of Leasing  
 g.Down payment (capitalized cost reduction) + security deposit 
 h.Total lease payments (monthly lease payment  x ___ no. months) 
 i.Opportunity cost of total initial payment [line g x 
  (1 + foregone rate of return(number of years))] 
 j.Any end-of-lease charges (e.g., excess mileage), if applicable 
 k.Less: Refund of security deposit 
 l.Total cost of leasing$0
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