A small business needs a new delivery truck. The company can either buy the truck outright for
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A small business needs a new delivery truck. The company can either buy the truck outright for $50,000 with a $10,000 Salvage or lease the truck for $1,000 per month for five years with a $10,000 Deposit. The Rate is 8%. The potential estimated cost savings by having access to a truck instead of using delivery providers for each delivery is about $15,000 annually.
To make a decision of buying or leasing the equipment in this scenario, consider to calculate the NPV using the following factors:
Upfront costs
Ongoing maintenance costs
Cost Savings
Resale value
Interest rate or cost of capital
Project timeline
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
Posted Date: