bwBASIC/BP100/SALELEAS.OUT

              SALE-LEASEBACK ANALYSIS

THE SITUATION FOR THIS PROGRAM IS THE FOLLOWING: AN OWNER OF A
PIECE OF PROPERTY NEEDS TO RAISE SOME MONEY AND NEEDS THE USE
OF THE PROPERTY. HE CAN SELL THE PROPERTY TO THE INVESTOR AND
THEN LEASE IT BACK(SALE-LEASEBACK) OR HE CAN JUST BORROW THE
MONEY AS A MORTGAGE ON THE PROPERTY.

THERE ARE VARIOUS TAX AND OTHER RAMIFICATIONS OF THE TWO
SITUATIONS WHICH THIS PROGRAM HELPS ANALYZE.

PRESS <ENTER> TO CONTINUE? 
ENTER PRESENT VALUE OF PROPERTY(SALE OR MORTGAGE AMT)? 100000
ENTER TERM OF THE LEASE OR MORTGAGE IN YEARS         ? 30
ENTER ANNUAL INTEREST RATE FOR LEASE IN %            ? 10
ENTER ANNUAL INTEREST RATE FOR MORTGAGE IN %         ? 4
ENTER CORPORATE TAX RATE IN %                        ? 15
ENTER TOTAL DEPRECIATION OVER TERM OF LEASE/MORTGAGE ? 5000



                 COMPUTING
PRESENT VALUE OF PROPERTY         100000.00
TERM OF LEASE OR MORTGAGE(YEARS)             30.00
ANNUAL INTEREST RATE FOR LEASE (%)             10.00
ANNUAL INTEREST RATE FOR MORTG (%)              4.00
CORPORATE TAX RATE (%)             15.00
TOTAL DEPRECIATION FOR TERM OF LOAN           5000.00

PRESS ENTER TO CONTINUE? 

ANNUAL LEASE RENTAL          10443.83
TOTAL LEASE PAYMENTS TO TERM         313314.81
TOTAL LEASE TAX DEDUCTIONS          46997.22
TOTAL ACTUAL COST OF LEASE TO TERM         266317.59

PRESS ENTER TO CONTINUE? 

ANNUAL MORTGAGE PAYMENT           5728.98
TOTAL MORTGAGE PAYMENTS TO TERM         171869.51
TOTAL MORTGAGE INTEREST PAID          71869.51
TOTAL MORTGAGE TAXABLE EXPENSES          76869.51
TOTAL MORTGAGE TAX DEDUCTION          11530.43
TOTAL MORTGAGE COSTS AFTER TAXES         160339.08


LEASE COSTS MORE THAN MORTGAGE BY          105978.51

PRESS ENTER TO CONTINUE? -1