A comparative financial analysis of the costs and benefits of a lease-purchase investment
Summary :
Table of Contents
- Introduction
- IT governance and performance assessment
- Business alignment and process improvement
- Strategic alignment
- Value delivery
- Resource and performance management
- Operational service and support
- Investment decision making factors
- Factors favoring leasing against factors not to lease
- Reasons to lease
- Factors favoring purchasing against factors not to purchase
- Reasons to purchase
- Quantitative and qualitative analysis
- Cost benefit analysis
- Conclusion
- Recommendation
- References
- Appendix
Abstract
This report was prepared as a result of work performed by the accounting and finance department in response to management request to investigate the company's lease-purchase options for the IT department. The upgrade of our IT material and equipment is essential for Reunite Corporation to remain competitive in their service offerings. In today's marketplace, the technology upgrade cycle is relatively shortened by constant industrial advances. For this reason, there is a sense of investigative urgency of the financial structuring of the upgrades in order to maximize the company's capitalization and return on investment. The scope of this report is limited to a paired comparative analysis between leasing and purchasing computer equipment. The analysis is performed by using various financial tools and techniques in order to conclude and recommend to management on the best course of action to take.
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