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Where can an investment of $30,000 get me?

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Answer

A:  (CD-Certificate of Deposit)
@ 5.00%, for 5 years  
After 5 years = US$ 38,288.45

B: Leasing
$30,000 for 60 months (5 years)
60 Payments of $680.46 each
Total payments: US$ 40,827.60 + US$ 3,000.00 (10% Buyout option) = $ 43,827.60
After 5 years = Equipment + 38,288.45 cash  

Important Tax Benefits:
Payment of US$ 680.46 for 60 months
Average Tax bracket of corporation 35% of US$ 680.46 = US$ 238.16 (amount picked up by Uncle Sam)
Actual payments will be US$ 680.46 - US$ 238.16 = US$ 442.30
Total payments:   
US$ 442.30 x 60 months = US$ 26,537.94 + US$ 3,000.00 = US$ 29,537.94 (Lower than the original value)

C: Cash:
Your investment US$ 30,000.00
You get to deduct depreciation on a seven-year schedule  
After 5 years you have equipment worth not much other than remaining depreciation. + “No cash”


D: Investment if you Lease:
You could invest $30,000 in a CD, inventory, cash flow, etc.
You pay monthly the payments for the equipment
You deduct 100% of the payment on your income statement
You can deduct 100% of the payment as tax deduction
You use your future sales and profits to pay for the fixtures
You get to keep $38,288.45 after 5 years in cash if invested in a CD at 5.0%, or higher
You get equipment that are paid up after 5 years, and which have still has some depreciable value

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