Cash vs. Finance Comparison This model is designed to present a Net Present Value after tax comparison of a cash purchase vs. a finance purchase. This model is for general information purposes in determining the best method for acquiring the desired solution. Business Solution CostSelect Cost Capital12%15%20%Cash NPV after tax total costFinance NPV after tax total costFinance BenefitCash NPV after tax total costFinance NPV after tax total costFinance BenefitCash NPV after tax total costFinance NPV after tax total costFinance BenefitHiddenCash Purchase CalculationsHiddenCash PurchaseNet Present ValueHiddenAfter Tax BenefitHiddenCash Purchase - 12%HiddenCash Purchase - 15%HiddenCash Purchase - 20%HiddenFinance Purchase CalculationsHiddenPaymentHiddenAggregate PaymentsHiddenAfter Tax BenefitHiddenFinance Purchase: 12%HiddenFinance Purchase: 15%HiddenFinance Purchase: 20%A finance solution provides the following key benefits: The finance requires less cash commitment at start of project. The finance is an overall less expensive method to acquire the solution in real after tax dollars. Debt is less expensive than equity capital. The finance allows your company to match expense with benefit over the term of the finance.
