Analyzing Lease Versus Buy Decisions" Simulation Summary
A. For a high-technology item, like computer equipment, is the lease option preferable from the very outset? Why or why not?
Yes, because from the start companies are not profitable and do not receive tax breaks. To buy out right can be costly and equipment will need to be upgraded sooner than the old equipment is profitable. Companies will most likely need to upgrade to remain competitive this can be costly for a new company. Also lease down payments are often cheaper than purchase payments. …
