Evaluating the lease vs. purchase decision.
Each individual lease vs. purchase situation should be analyzed using the Net Present Value evaluation Method proposed to decide which method of financing is best for a particular practice. As this article is not designed to be a comprehensive resource on lease vs. purchase decision making, it is hoped that this model can be a starting point for you and your financial manager to develop a NPV/lease vs. purchase model that is more relevant to your practice.
Hah
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Department of OTO/HNS, UAMS, Little Rock, AR 72205.
Lee
K J
KJ
D003201:Computers / Q000191:economics; D003365:Costs and Cost Analysis; D006123:Group Practice / Q000191:economics*; D007860:Leasing, Property / Q000191:economics*; D010067:Ownership / Q000191:economics*; D013660:Taxes