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Definition of Factors and Cost Measurement

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Should I lease or buy a car?
Provide an Executive Summary,definition, factors or Costs,measurement, analysis and Summary.

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Executive Summary
In capital budgeting decisions such as whether to buy or lease a car, the objective is always stockholders' wealth maximization. Thus, the decision criteria is the investment project which results to higher shareholder wealth. Investment decision criteria often used in evaluating capital budgeting projects are the net present value and the internal rate of return.

If leasing the car results to higher NPV and IRR, then you should choice this option, otherwise buy the car outright.

Definition of Factors and Cost Measurement
In financial decisions such as leasing or outright purchase of capita assets such as cars, the decision maker has to compare the merits of ...

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