Explore BrainMass

Explore BrainMass

    Lease vs Buy Decision

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Describe how the lease verses buy analysis is conducted.

    © BrainMass Inc. brainmass.com December 24, 2021, 5:05 pm ad1c9bdddf

    Solution Preview

    There are four points in conducting the whether a lease option is better than a buy option.

    1. Marginal tax rate- First look if the lessee is tax exempt and therefore this would not really be a factor and you could move down to number 2. However, if the tax is pretty high for the individual or entity leasing, you need to calculate if in time the tax would outweigh the actual cost at some point and that is when you start thinking of buying instead of leasing.

    2. The interest of capital if it was to be borrowed to pay for the product ...

    Solution Summary

    This solution discusses a lease vs. buy decision.