Analyzing the Lease, Rent or Buy Decision for Projects

Analyzing the Lease, Rent or Buy Decision for Projects

 

The lease, rent or buy decision refers o business analysis that determines the most cost-effective way to procure the necessary equipment for a project. Such a decision is primarily based on financial analysis.

Buy decision

 

Typical example…

A project requires a high-speed copier with collating capabilities. If it is a small, one-time project and the Equipment is very expensive and prone to breaking, it may be cost-effective the lease the Equipment and take advantage of a service agreement.

 

But if the project is ongoing over a period of months and service needs are not anticipated, it may be more cost-effective to rent a copier for the duration of the project.

 

SEE ALSO  Examining Standards And Regulations For Projects

For a long term project requiring extensive copying resources, it may be more cost-effective to purchase the Equipment.

 

Now your take on this argument.

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