SAMPLE Lease Plan

Capital Cost: $25,000.00

Term: 36 Months

Corporate Tax Rate: 24%

Depreciation Rate: 15% First Year

30% Remaining Years (declining balance)

LEASING $ BANK FINANCING $ CASH PURCHASE $

Rate Factor per 1000 32.81 Finance Cost @ 8% $ 28,202.00 Cash Purchase: $25,000.00

Monthly Payment:

$25,000. X .3281                 820.00 Total Cost of Bank Financing

Tax Expenses: Tax Expenses:

Depreciation Yr 1: $ 3,750.00

Cost: 36 X $820.00 $ 29,520 Depreciation Yr 2: $ 6,375.00 Depreciation Yr 1: $ 3,750.00

Buyout: 5% of $25,000 $ 1,250.00 Depreciation Yr 3: $ 4,462.00 Depreciation Yr 2: $ 6,375.00

Interest Expense $ 3,202.00 Depreciation Yr 3: $ 4,462.00

Total cost of Leasing: $ 30,770.00 Total Tax Expenses: $ 17,789.00 Total Tax Expenses: $14,587.00

Tax Savings: Tax Savings: Tax Savings:

24% X $30,770.00 $ 7,384.80 24% X $17,789.00 $ 4,269.36 24% X $14,587.00 $ 3,500.00

Loss of Interest:

@5% / Yr: $ 3940.00

After Tax Loss of Interest: $ 2,994.40

Net Cost of Leasing: $ 23,385.20 Net Cost Bank Finance $ 23,932.64 Net Cost Purchase: $24,494.40

LEASING is THE BEST ALTERNATIVE!

If Your Tax Rate is Greater Than 24%, Your Savings are Greater.