9000 REM ***** LESSEE ***** BUSINESS PROGRAM 9002 REM LESSEE *********** VERSION #1 (7/31/69)******LEASE/PURCHASE ANALYSIS 9004 REM THIS PROGRAM COMPARES A LEASE WITH PURCHASE OF EQUIPMENT, USING 9006 REM THE BOWER-WILLAIMSON METHOD OF ANALYSIS. THE EQUIPMENT IS DE- 9008 REM PRECIATED WITH SUM-OF-THE-YEARS-DIGITS, AND THE APPROPRIATE IN- 9010 REM VESTMENT TAX CREDIT IS TAKEN, FOR THE PURCHASE ALTERNATIVE. 9012 REM 9014 REM VALUES ARE REQUIRED FOR THE FOLOWING VARIABLES: 9016 REM 9018 REM 1. P = THE PURCHASE PRICE OF THE EQUIPMENT 9020 REM 2. T = THE LESSEE'S INCOME TAX RATE 9022 REM 3. R1 = THE INTEREST RATE ON A LOAN, COMPOUNDED SEMI-ANNUALLY 9024 REM 4. R2 = THE OPPORTUNITY RATE THAT CAN BE EARNED, AFTER TAXES, ON 9026 REM NEW INVESTMENTS, COMPOUNDED SEMI-ANNUALLY 9028 REM 5. M = THE MONTHLY RENT, PAYABLE IN ADVANCE 9030 REM 6. L = THE DEPRECIABLE LIFE IN YEARS 9032 REM 7. S1 = THE SALVAGE VALUE FOR TAX PURPOSES 9034 REM 8. S2 = EXPECTED ACTUAL SALVAGE VALUE, MUST BE LESS THAN P 9036 REM 9. E1 = EXPENSES OF MAKING THE LEASE AGREEMENT 9038 REM 10. E2 = ANNUAL SAVING IN EXPENSES DUE TO THE LEASE 9040 REM 11. Y = THE LENGTH OF THE LEASE IN YEARS 9042 REM 12. J = THE LENGTH OF THE BASIC RENTAL PERIOD 9044 REM 13. Z = 0 IF NO INVESTMENT TAX CREDIT IS TAKEN, OTHERWISE 1 9046 REM 14. X = THE NUMBER OF THE VARIABLE FOR WHICH A SENSITIVITY ANALYSIS 9048 REM IS TO BE DONE; 0 IF NO ANALYSIS; 1 IF ON PURCHASE PRICE, 9050 REM 2 IF ON INCOME TAX RATE, ETC. 9052 REM 15. X1 = THE LOWEST VALUE FOR THE VARIABLE SPECIFIED IN14. 9054 REM 16. X2 = THE HIGHEST VALUE OF THE VARIABLE SPECIFIED IN 14. 9056 REM 9058 REM 9060 PRINT '* LEASE/PURCHASE ANALYSIS *' 9062 PRINT 9064 PRINT 'HAS YOUR DATA ALREADY BEEN ENTERED'; 9066 INPUT N$ 9068 IF N$='YES' THEN 9082 9071 PRINT 9072 PRINT 'THEN DO SO NOW BEGINNING IN LINE 9900. DATA SPECIFICATIONS CAN BE' 9074 PRINT 'LISTED BY TYPING "LIST-9014".' 9076 PRINT 'VALUES FOR P,T1,R1,R2,M,L,S1,S2,E1,E2,Y,J,Z,X,X1,X2 MUST BE ENTERED,' 9078 PRINT 'AND IN THAT ORDER.' 9080 GOTO 9999 9082 READ P,T,R1,R2,M,L,S1,S2,E1,E2,Y,J,Z 9084 READ X,X1,X2 9088 F9=0 9090 PRINT 9092 IF X=0 THEN 9102 9094 PRINT 'DO YOU WANT THE SENSITIVITY ANALYSIS ONLY'; 9096 INPUT N$ 9098 PRINT 9100 IF N$='YES' THEN 9128 9102 GOSUB 9158 9104 PRINT 9106 PRINT 'DO YOU WANT TO SEE THE FLOWS'; 9108 INPUT N$ 9110 PRINT 9112 IF N$='YES' THEN 9118 9114 F9=-1 9116 GOTO 9120 9118 GOSUB 9224 9120 GOSUB 9238 9122 PRINT 9124 GOSUB 9441 9126 IF X=0 THEN 9999 9128 PRINT ' SENSITIVITY ANALYSIS ON '; 9130 GOSUB 9354 9132 PRINT 9134 GOSUB 9354 9136 PRINT TAB(30)'NET ADVANTAGE OF LEASE' 9138 FOR F8=0 TO 10 9140 F9=-1 9142 RESTORE 9144 READ P,T,R1,R2,M,L,S1,S2,E1,E2,Y,J,Z,X,X1,X2 9146 GOSUB 9366 9148 GOSUB 9200 9150 GOSUB 9238 9152 PRINT TAB(30);A1+V2 9153 NEXT F8 9154 PRINT 9155 PRINT '************************************************************' 9156 GOTO 9999 9158 PRINT 9160 PRINT '************************************************************' 9162 PRINT 9164 PRINT ' *COMPARISON OF LEASE WITH PURCHASE*' 9166 PRINT 9168 PRINT 'PURCHASE PRICE $';P 9170 PRINT 'TAX RATE';T 9172 PRINT 'INTEREST RATE';R1 9174 PRINT 'OPPORTUNITY RATE';R2 9176 PRINT 'MONTHLY RENT $';M 9178 PRINT 'DEPRECIABLE LIFE';L;'YEARS' 9180 PRINT 'SALVAGE FOR TAX $';S1 9182 PRINT 'EXPECTED SALVAGE $';S2 9184 PRINT 'EXPENSE OF ARRANGING LEASE $';E1 9186 PRINT 'ANNUAL EXPENSE SAVING DUE TO LEASE $';E2 9188 PRINT 'LEASE LENGTH';Y;'YEARS' 9190 PRINT 'BASIC RENTAL PERIOD';J;'YEARS' 9192 IF X=0 THEN 9200 9194 PRINT 'SENSITIVITY ANALYSIS ON '; 9196 GOSUB 9354 9198 PRINT ' WITH A RANGE OF';X1;'TO';X2 9200 IF Z=0 THEN 9214 9202 C1=.07*P 9204 IF L>7 THEN 9216 9206 C1=(2/3)*C1 9208 IF L>5 THEN 9216 9210 C1=(1/3)*C1 9212 IF L>3 THEN 9216 9214 C1=0 9216 IF F9=-1 THEN 9222 9218 PRINT 'INVESTMENT TAX CREDIT TO BE TAKEN $';C1 9220 PRINT 9222 RETURN 9224 PRINT 9226 PRINT TAB(50)'BASIC' 9228 PRINT TAB(40)"OP'G FLO"TAB(50)'CASH FLO'TAB(60)'BASIC' 9230 PRINT TAB(40)"DIFF'CE"TAB(50)'SAVING'TAB(60)'CASH FLOW' 9231 PRINT 'YEAR';TAB(9);'PAYMENT';TAB(20);'DEPR'; 9232 PRINT TAB(30)'LOAN'TAB(40)'WITH'TAB(50)'WITH'TAB(60)'DISC.AT' 9234 PRINT 9236 RETURN 9238 R4=(1+R1/2)^(1/6)-1 9240 P1=(M/R4)*(1+R4-(1/(1+R4)^(12*J-1))) 9242 A1=P-P1 9244 IF J=0 THEN 9248 9246 B2=M*P/P1 9248 P2=P 9250 D1=0 9252 V2=0 9254 M1=12*M 9256 I1,I2,I3,I4,I5,I6=0 9258 FOR K=1 TO Y 9260 D=(P2-S1)*2*(L-K+1)/(L*(L+1)) 9262 IF D<=P2-S1-D1 THEN 9266 9264 D=P2-S1-D1 9266 IF D>=0 THEN 9270 9268 D=0 9270 D1=D1+D 9272 B3=0 9274 IF K>J THEN 9288 9276 FOR I=1 TO 12 9278 B1=R4*(P-B2) 9280 B3=B3+B1 9282 B4=B2-B1 9284 P=P-B4 9286 NEXT I 9288 F=E2 9290 S3=-E2 9292 IF K>1 THEN 9300 9294 F=E2-E1 9296 S3=-F 9298 GOTO 9308 9300 IF K