[Code of Federal Regulations]
[Title 49, Volume 7]
[Revised as of October 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR639.25]

[Page 58]
 
                        TITLE 49--TRANSPORTATION
 
CHAPTER VI--FEDERAL TRANSIT ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
 
PART 639_CAPITAL LEASES--Table of Contents
 
                      Subpart C_Cost-Effectiveness
 
Sec.  639.25  Calculation of lease cost.

    (a) For purposes of this part, the lease cost of a capital asset 
is--
    (1) The cost to lease the asset for the same use and same time 
period specified in the recipient's proposal to obtain the asset by 
purchase or construction; plus
    (2) Ancillary costs such as delivery and installation; plus
    (3) The net present value of the estimated future cost to provide 
any other service or benefit requested by the applicant in its proposal 
to obtain the capital asset.
    (b) The estimated lease costs must be reasonable, based on realistic 
market conditions applicable to the recipient and must be expressed in 
present value terms.