Map buy, lease and repair costs
See this course’s project requirements
An equipment financial decision model with service-equivalent alternatives, timed costs, downtime, residual value and a conditional recommendation.
Keep your working files in your own notebook or software. Save a private description, checklist, and work link in My Proof.
What to include
- A service-equivalence screen with usable capacity and a changed-demand exclusion.
- A dated four-column cash-cost ledger with separate resale and maintenance rows.
- A present-cost table with factors, signed cash flows and final rounding.
- A contribution-based downtime row linked to service and present cost.
- A three-scenario sensitivity table with explicit dependent rows.
- A conditional capital decision brief with calculations and reversal triggers.
Review and revise
Use these criteria to check your work and choose what to improve.
- Service: every candidate is screened against usable demand.
- Finance: dated signed costs and present factors reconcile.
- Risk: downtime/residual scenarios update all dependencies.
- Decision: conditional grounds, triggers and unresolved real terms are explicit.
Want more background?
The idea in everyday life
Original fictional practice. All money is USD. No account, payment, personal record or outside participation is required. A fictional print shop needs 900 usable cutting jobs each year for three years. Buy supplies capacity 1,200, costs 2,400 now plus 200 maintenance at each year end and yields 600 resale at year 3. Lease supplies capacity 1,200, costs 100 now plus 900 at each year end, maintenance included, no resale. Repair supplies capacity 1,000, costs 600 now plus 500 at each year end, no resale. Expected lost jobs/year are buy 20, lease 10, repair 80. Each lost job forfeits 2 contribution; use an 8% annual discount rate and year-end operating costs. Ignore financing/taxes; these are exercise assumptions.
Cost timing and ownership effects need separate rows.
Map buy, lease and repair costs — complete worked case
Cost timing and ownership effects need separate rows.
A fictional print shop needs 900 usable cutting jobs each year for three years. Buy supplies capacity 1,200, costs 2,400 now plus 200 maintenance at each year end and yields 600 resale at year 3. Lease supplies capacity 1,200, costs 100 now plus 900 at each year end, maintenance included, no resale. Repair supplies capacity 1,000, costs 600 now plus 500 at each year end, no resale. Expected lost jobs/year are buy 20, lease 10, repair 80. Each lost job forfeits 2 contribution; use an 8% annual discount rate and year-end operating costs. Ignore financing/taxes; these are exercise assumptions.
Original three-year alternatives
Paste at A1.
| AAlternative | BGross jobs/year | CNow | DAnnual end cost | EYear 3 resale | FLost jobs/year |
|---|---|---|---|---|---|
| Buy | 1200 | 2400 | 200 | 600 | 20 |
| Lease | 1200 | 100 | 900 | 0 | 10 |
| Repair | 1000 | 600 | 500 | 0 | 80 |
Copy as plain text
1. 2.1 Map
Draw columns t 0 through t 3 and place only the supplied cash costs in their proper date.
You should see: Each alternative has four dated net-cost entries.
2. 2.2 Map
Subtract resale in the year it is received and preserve both maintenance and resale rows.
You should see: Buy year 3 net cost is −400, not a 600 upfront rebate.
3. 2.3 Map
Add nominal totals to check the ledger while keeping it distinct from a present-cost comparison.
You should see: Buy 2,400; lease 2,800; repair 2,100.
4. 2.4 Map
Change buy resale to 300 and update only its year 3 net cost and nominal total.
You should see: Year 3 becomes −100; buy nominal total becomes 2,700.
What to finish
A dated four-column cash-cost ledger with separate resale and maintenance rows.
Watch for this
Treating resale as an immediate discount or counting included lease maintenance twice.
How can I tell I understand it?
Verify that your completed dated four-column cash-cost ledger with separate resale and maintenance rows meets the three lesson-specific checks and retains the supporting original records.
Quick knowledge check
Answer all 3 questions. Get at least 2 right and the lesson completes automatically.
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Pass the check. We’ll save the progress.
Answer all 3 questions above and get at least 2 right. You can review the explanations and try again.
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Sources and further reading
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Source & access notes · checked 2026-10-01
Read discounted cash flow and comparison limits. Course compares present costs for equivalent service, not a promised return.
Access: Public primary page body opened and relevant sections read through the web reader on 2026-10-01; no account required for reading.
Reuse: Original Life Starter cases, datasets and questions; no source exercise or worked dataset reproduced. Links support further reading.
Source & access notes · checked 2026-10-01
Read the actual redirected public body at lease/buy section: service needs, upfront cash, maintenance and lease-term review. Tax/accounting claims in the source are not adopted as universal rules.
Access: Public primary page body opened and relevant sections read through the web reader on 2026-10-01; no account required for reading.
Reuse: Original Life Starter cases, datasets and questions; no source exercise or worked dataset reproduced. Links support further reading.
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