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| First off, I am in no means trying to say you did the right/wrong thing. I just want to be clear on that because there are many factors and preferences people in operating their own business. And you can run your business with however you see fit.
But, I am sorry to say that you are not even close on figuring your numbers correctly.
First off, depreciation is a non-cash item, so it should not be included in you cash expenses. Secondly, you state yourself how money in-hand can be used for other things…yet your analysis gives it no consideration.
This is a better representation of your cost with your projected payments. Also, I am figuring in your $5,000/yr repair expenses even though that sounds rather high. But, that should also offset other things that are not being considered (property tax for example). Still, I would think if you are repairing that 8300 as much as we are showing, it will be worth a lot more than $50,000 at the end of five years. Nevertheless, the 8300 purchase will cost you about $10,000 less. If you can get $65,000 for the 8300 at the end of five years, then is comes out to about $20,000 less (This is not shown in the attached spreadsheet).
Mav
Edited by Mav 11/28/2012 12:15
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 NPC2.jpg (90KB - 44 downloads)
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Leasing question
