Complete the simulation Analyzing Lease vs. Buy Decisions located on the page for this course and prepare
Question:
Complete the simulation “Analyzing Lease vs. Buy Decisions” located on the page for this course and prepare a 750-1000-word summary in which you address the following:
For each of the major phases in the simulation, briefly describe:
The scenario
You are recommended solution(s), including why you made your decision(s)
Summarize the different capital budgeting concepts addressed in this simulation by answering the following questions:
a) What risks and uncertainties should be considered while making a lease vs. buy decision? How do these risks and uncertainties impact capital budgeting?
b) In what circumstances is a capital lease a better alternative to an operating lease? Under what circumstances is a capital lease a better alternative than buying an asset?
c) How do qualitative factors like the condition of an asset impact a final lease or buy decision?
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...
Step by Step Answer:
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill