NPV for Leased Equipment versus Purchased Equipment
Rick Garlick, United States, Member
Do any of you use NPV for a lease situation? I lease equipment and am often asked about purchase versus lease
I do not have the customers cash inflows, but when I'd do this comparison of NPVs, the least negative of the two would be the one to go with, taking into account depreciation and taxes along with the cost they incur with a purchase or lease.
I just want to be sure I am going about this the correct way. If anyone else has something they do/use, please share. Thanks!