SBFM2000: Average Monthly Profit from Asset Not Used in Buy vs. Lease Analysis (234078)



The information in this article applies to:

  • Microsoft Small Business Financial Manager, when used with:
    • Microsoft Office 2000 Small Business Tools

This article was previously published under Q234078

SYMPTOMS

In the Buy vs. Lease Wizard, when you type a dollar amount in the Average Monthly Profit from Asset box, this amount is not used in the "Net Present Value of Total Cost" calculation of the Buy vs. Lease Analysis Report summary.

STATUS

Microsoft has confirmed that this is a problem in the Microsoft products that are listed at the beginning of this article.

MORE INFORMATION

When you create a Buy vs. Lease Analysis for a business and type a dollar amount in the Average Monthly Profit from Asset box, the analysis does not use this dollar amount in the "Net Present Value of Total Cost" calculation. If you change the Average Monthly Profit from Asset amount, although the Total Cost figure reflects this change the net present value (NPV) does not change.

The NPV is unchanged for each type of buy vs. lease analysis: cash purchase, loan purchase, and lease acquisition. Therefore, each of the net present value of total cost calculations is affected. Although each of the NPV calculations is incorrect, the other calculations in the report are correct, and the overall analysis does accurately reflect the lowest financing option. To see the effect of the average profit gained from the asset, click More Info for each financing type.

Modification Type:MajorLast Reviewed:10/7/2003
Keywords:kbbug kbpending kbsbt KB234078