Introduction
Everyday companies are faced with the decision of whether to lease or to buy when acquiring assets. By being able to calculate the best decision for both options, a company will be able to make the most profitable choice. However some tough questions will need to be answered like what is the expected life of the asset, what is the rate of obsolescence, and what will be the impact of the assets purchase on the balance sheets and cash flow? In this simulation paper I will discuss the advantages of buying vs. leasing as it pertains to these questions.
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