HOLBROOK CAPITAL FUNDING

    Cost Analysis

    Here is a quick and easy way to estimate what a piece of equipment can actually cost using leasing and after tax costs.  Since qualifying leases can be expensed directly, the tax benefits are available sooner.

    Here is an example:

               1. Determine the equipment cost                                                             $    44,950.00

               2. Monthly lease payment (60 month lease*)                                           $         988.50

               3. Tax deduction (We'll use 40% of gross**)                                            $         395.40

               4. Deduct line 3 from line 2 to get the net cost per month                        $         593.10

    Now let's translate this into operating figures:

              5. Divide by 22 days*** to get the net cost per day                                    $           26.96

              6. Divide by 8 hours**** to get the net cost per hour                                  $             3.37 per hour

    Thus a $45,000.00 piece of equipment can really cost less than $3.50 an hour!   

           

    NOW TRY THIS WITH YOUR SITUATION      

              1. Equipment Cost                                                                                     $____________

              2. Monthly payment (line 1 x .0235)                                                           $____________

              3. Tax Deduction (___% of line 2)                                                              $____________

              4. Net Monthly Cost (line 2 less line 3)                                                       $____________

              5. Net Daily Cost (line 4 divided by ___days)                                             $____________

              6. Net Hourly Cost (line 5 divided by ___hours)                                         $____________per hour

    *Illustration only. Actual rate may vary.

    **Federal plus state usually around 40%.

    ***Avg. # of business days/month at five days per week.

    ****Select hours of operation per day.