HP new example

Example

In order to demonstrate the functions of the Lease or Buy Calculator, we have created a practical example, which demonstrates the cost of buying and the cost of leasing a typical computer systems package.

Description of the Hewlett Packard Solution:

• HP E60 Netserver with monitor.
• HP CDwriter.
• HP 2000C Professional Series printer.
• 2 HP Vectra Stations with monitors and network capable.
• Solution cost (approximate) $8,625.

EXAMPLE:
A small business owner doesn't know if he should lease or buy the Hewlett Packard Solution package that he found on the Internet. This owner use the Lease or Buy calculator to see which option he should choose between leasing or buying the equipment.
To calculate the cost of leasing he needs to know know the following: (the following numbers are fictive)

• Business tax rate: 20%.
• The leasing term in years: 3 years.
• The monthly lease payment: $275.

• Business tax rate: 20%.
• The loan term payment in years: 3 years.
• The annual interest rate at which the user can borrow to buy the equipment: 10%.
• The cost of the equipment: $8625.
• The Capital Cost Allowance (CCA) class rate: 30%.

As you will see in the calculator, for this business owner there is an advantage over full term to leasing by $145.66. To compare the cost of owning and the cost of buying this computer systems package and to see the details of the calculations go to the Lease or Buy Calculator.

The system specifications and amounts for the precedent example were obtained in collaboration with Hewlett Packard.