{"id":17456,"date":"2023-04-26T23:23:08","date_gmt":"2023-04-26T23:23:08","guid":{"rendered":"https:\/\/www.goodacademic.com\/blog\/questions\/lease-versus-purchase-this-is-someone-strong-in-finances-must-follow-instructions-and-rubric\/"},"modified":"2023-04-26T23:23:08","modified_gmt":"2023-04-26T23:23:08","slug":"lease-versus-purchase-this-is-someone-strong-in-finances-must-follow-instructions-and-rubric","status":"publish","type":"questions","link":"https:\/\/www.goodacademic.com\/blog\/questions\/lease-versus-purchase-this-is-someone-strong-in-finances-must-follow-instructions-and-rubric\/","title":{"rendered":"Lease Versus Purchase (This is someone strong in Finances) Must follow instructions and Rubric"},"content":{"rendered":"<p>Health resources are finite. Therefore, it is incumbent on all health organizations to exercise responsible fiscal decision making when allocating their financial resources.<\/p>\n<p>As the senior cost analyst for a local, nonprofit hospital, you are charged with determining the most appropriate use of financial resources and making recommendations. Your organization is seeking to secure a new CT Scan unit for the expanded emergency department. The hospital has the option of leasing the equipment or purchasing the equipment.<\/p>\n<p>The CT scan cost is $1,300,000 at 10% (PV), with straight-line depreciation over 5 years. The trade-in value $130,000 at the end of its useful life. The maintenance expense equals $12,000 annually.<\/p>\n<p>The cost to lease the equipment is $26,000 per month for 60 months, which includes all maintenance costs. The tables below provide the financial overview of the purchase and lease costs.<\/p>\n<h4><strong>Instructions<\/strong><\/h4>\n<p>In a written case analysis, use the figures provided in the tables to discuss the following:<\/p>\n<ul>\n<li>Compare and contrast leasing versus purchasing. You may use the Rasmussen library to research articles addressing lease versus purchase decisions in order to support your assertions.<\/li>\n<li>Calculate the figures relative to the principal payment, interest payment, maintenance expense, total expense, and PV expense and complete the table attached &nbsp;(Please see attached file)<\/li>\n<li>Provide a detailed explanation of the costs associated with leasing the equipment as depicted in the table.<\/li>\n<li>Provide a detailed explanation of the costs associated with purchasing the equipment as depicted in the table.<\/li>\n<li>Discuss the potential tax implications of leasing the equipment, assuming that the organization is a nonprofit.<\/li>\n<li>Discuss the potential tax implications of purchasing the equipment, assuming that the organization is a nonprofit.<\/li>\n<li>Recommend a course of action and the implications that your recommendation may have for the organization.<\/li>\n<\/ul>\n<p>Rubric Below:<\/p>\n<p>Clear and thorough discussion comparing and contrasting leasing versus purchasing. Includes multiple (at least three ) examples to support assertion<\/p>\n<p><strong>A &#8211; 4 &#8211; Mastery<\/strong><\/p>\n<p>Clear and thorough calculations of the figures relative to the principal payment, interest payment, maintenance expense, total expense, and PV expense.<\/p>\n<p><strong>A &#8211; 4 &#8211; Mastery<\/strong><\/p>\n<p>Clear and thorough explanation of the costs associated with leasing the equipment as depicted in the tables<\/p>\n<p><strong>A &#8211; 4 &#8211; Mastery<\/strong><\/p>\n<p>Clear and thorough explanation of the costs associated with purchasing the equipment as depicted in the tables.<\/p>\n<p><strong>A &#8211; 4 &#8211; Mastery<\/strong><\/p>\n<p>Clear and thorough discussion on the potential tax implications of leasing the equipment.<\/p>\n<p><strong>A &#8211; 4 &#8211; Mastery<\/strong><\/p>\n<p>Clear and thorough discussion on the potential tax implications of purchasing the equipment.<\/p>\n<p><strong>A &#8211; 4 &#8211; Mastery<\/strong><\/p>\n<p>Comprehensive recommendations for a course of action and the implications that the recommendation may have for the organization.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Health resources are finite. Therefore, it is incumbent on all health organizations to exercise responsible fiscal decision making when allocating their financial resources. As the senior cost analyst for a local, nonprofit hospital, you are charged with determining the most appropriate use of financial resources and making recommendations. Your organization is seeking to secure a [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","meta":[],"disciplines":[239],"paper_types":[],"tagged":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions\/17456"}],"collection":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions"}],"about":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/types\/questions"}],"author":[{"embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/comments?post=17456"}],"version-history":[{"count":0,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions\/17456\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/media?parent=17456"}],"wp:term":[{"taxonomy":"disciplines","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/disciplines?post=17456"},{"taxonomy":"paper_types","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/paper_types?post=17456"},{"taxonomy":"tagged","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/tagged?post=17456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}