Buying vs Renting in Excel

newbiegirl

New member
Joined
Jun 23, 2011
Messages
3
I cant figure this thing out fully, I feel so clueless. Does anyone have any pointers or tips for me?

Background info:
Company needs a new copy machine. Rent costs are = 17.5 cents / each.
Number of copies = atleast 200 000. (The company agrees to buy at least that number)
Buying the unit costs 150 000 SEK. The bank wants a 6.5% interest rate and
after 5 years, the unit needs to be fully paid for.
Maintenance and operation is estimated to cost 6 cents / copy.
In both cases, the actual paper costs will be the same for both options.
---------------------------------------------------------------------------------------------------

IVE SOLVED THIS ONE:
What is the total cost after 5 years, which is cheapest?
I NEED TIPS ON HOW TO SOLVE THESE TWO QUESTIONS :How many copies / year, before it pays to buy the machine instead of renting?
Which maximum price / copy, can you pay to the leasing company in case you want to have equal cost to lease / purchase if you copy 200,000 copies / year. (Other values ??are equal)

Any help is greatly appreciated!:)
 
newbiegirl said:
I cant figure this thing out fully, I feel so clueless. Does anyone have any pointers or tips for me?

Background info:
Company needs a new copy machine. Rent costs are = 17.5 cents / each.
Number of copies = atleast 200 000. (The company agrees to buy at least that number)
Buying the unit costs 150 000 SEK. The bank wants a 6.5% interest rate and
after 5 years, the unit needs to be fully paid for.
Maintenance and operation is estimated to cost 6 cents / copy.
In both cases, the actual paper costs will be the same for both options.
---------------------------------------------------------------------------------------------------

IVE SOLVED THIS ONE:
What is the total cost after 5 years, which is cheapest?

How did you solve this one - please show work


I NEED TIPS ON HOW TO SOLVE THESE TWO QUESTIONS :How many copies / year, before it pays to buy the machine instead of renting?
Which maximum price / copy, can you pay to the leasing company in case you want to have equal cost to lease / purchase if you copy 200,000 copies / year. (Other values ??are equal)

Any help is greatly appreciated!:)

TRIPLICATE POST: (without showing any work)

http://www.excelforum.com/excel-new-use ... ost2550788

http://www.jiskha.com/display.cgi?id=1308850306
 
You can, but others are free not to open it. You should learn to communicate in other ways.
 
Says that extension .xls is not allowed.. Ill attach is a screenshot instead!
 

Attachments

  • excel.jpg
    excel.jpg
    52.8 KB · Views: 51
Top