# NPV for Leased Equipment versus Purchased Equipment

 0
Rick Garlick
United States

NPV for Leased Equipment versus Purchased Equipment

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!

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 More on Net Present Value (NPV):
 Discussion Topics
 Re-evaluating an investment decision Operating Cash Flows Does the Net Present Value (NPV) calculation uses cash inflows or profits? Choosing between Investments Using a Comparison of NPVs More Complex NPV Comparison: Interrelated Projects NPV of \$1 Million for a Project Means What WHEN to Invest? Investing at the Right Moment... Calculating NPV with Missing Data Example of Net Present Calculation NPV of Partial Payments How do you Calculate NPV when Initial Investments are Unknown? Missed Interest in NPV NPV assumes Certainty of Cash Flows Calculating Cost per Unit if Zero NPV without any Operating Costs Information Calculating NPV for a Project NPV Cost Avoidance and Savings 👀 NPV for Leased Equipment versus Purchased Equipment NPV with a Missing Cash Flow Figure 🔥 NPV with Only Costs & IRR
 Special Interest Group
 Do you know a lot about Net Present Value (NPV)? Become our SIG Leader