Abstract
This paper explains how a capital lease and buying an asset work. The author points out the differences between the two methods.

From the Paper
" According to Warren Fees in his book "Accounting", a lease is a contract for the use of an asset for a stated or fixed period of time. The two parties to a lease are the lessor and the lessee. The lessor is the party that owns the asset. The lessee is the party to whom the right to control and used the asset are granted by the lessor. In return the lessee is obligated to make periodic payments to ..."

Tags:operating lease, capital lease, lease or buy, down payment, flexibility, options and alternatives, decision making

Abstract
The paper presents brief descriptions of various lease vs. buy scenarios along with recommended solutions, including reasons behind the decisions. The paper discusses how asset acquisitions require comparing and contrasting the advantages and disadvantages of leasing and buying options. The paper shows how to make an optimum decision, one must analyze the present values of the cash outflows for the different leasing and buying options.

Outline:
Abstract
Simulation Scenario and Recommendations
Risks and Uncertainties
Advantage of Present Value of Outflows
Capital Lease vs. Operating Lease
Condition of Assets
Conclusion

From the Paper
"Bonnesante Research is small, young biotech company based in California. The company originated with a purpose to produce new, innovative, and highly profitable anti-infective drugs. Bonnesante obtains operating capital from Venture Capitalist (VC) but due to the high-risk of anti-infective drug production ventures, VC is conservative with their funding. Since acquiring assets is a major focus for the company and funding is conservative, Bonnesante must scrutinize lease and buy options."

Tags:cash, outflow, asset, acquisition, funding

Abstract
This paper takes a look at the issue of buying or leasing company assets. The paper studies the company, Bonnesante Research, discussing both the option to lease and to buy certain assets for the company's use in its operations. The primary objective of this simulation is to determine which among the two options would be applicable and be effective in the given circumstances.

From the Paper
"In the simulation scenario, the initial requirement being considered by Bonnesante is the acquisition of a mainframe computer. This computer equipment would be useful for the company's objective to heighten its research for the first six months of its trial operations and support the requirement of the Food and Drug Administration. To acquire the equipment, Bonnesante must determine whether to purchase the computer mainframe outright or use the mainframe under an operating lease agreement. Based on the decisions made in the simulation, the company opted to lease the mainframe for 18 months. The decision to lease was employed in consideration of the rapid obsolesce of computer equipments and comparatively to advance high-end computer workstations which is functioning at par with mainframes. Purchasing it was not advisable. Since Bonnesante is still not a profitable company, the depreciation of such equipments shall affect the present cash flow situation due to the un-applicability of taxes if the mainframe is to be purchased. Operating lease is a good option for equipments with high rates of obsolesces."

Tags:cash, flow, deposit, cost, repayment, capital, lease, tax

Abstract
In this article, the writer discusses that the decision to lease equipment as opposed to buying outright is a complex decision with benefits to both considerations. The writer maintains that for the leasing option, companies such as Paulo's restaurant, that have a limited amount of capital or are constrained in their access to capital sources, leasing is the better option. Further, the writer maintains that for companies that have no capital issues and that are purchasing equipment that has a long life span, buying the equipment is the best option because the returns on the investment cover a longer period.

Tags:lease, purchase, paulo

Abstract
This paper discusses the various options and alternatives that Bonnesante, a medical production company, faces in deciding whether to lease or purchase capital equipment and facilities. Among some of the considerations it must account for are its cash flows and cash reserves as well as tax liability issues. For equipment that faces rapid obsolescence a lease finance package is likely best, while equipment with a long life-span it is better to purchase from the beginning. But in any event, these decisions are always subject to the individual circumstances of the company in question.

From the Paper
"The decision to lease equipment as opposed to buying it outright is a complex decision with benefits to both considerations. For the leasing option, companies that have a limited amount of capital or are constrained in their access to capital sources, leasing is the better option. For companies that have no capital issues and that are purchasing equipment that has a long life span, buying the equipment is the best option because the returns on the investment cover a longer period. Yet, there are considerations in both cases that might make the obvious choice the second option rather than the first depending on the individual conditions of each business."

Tags:lease, purchase, capital

Abstract
In this paper, the two feminists Frances Willard and Mary Elizabeth Lease are compared and contrasted in their varying approaches toward feminist causes in the 19th and 20th centuries. The writer discusses that by understanding Lease's attack on capitalism in American through the Populist Party, she provides a far more economic point of view on the nature of women and the patriarchal values that limit their role in government.

Tags:suffrage, lease

Abstract
This paper indicates that the NPV (net present value) analysis shows a net loss fo Cu Boxes on the lease option over the operational life of the equipment because it would lose the tax benefits related to depreciation. The paper then explains, however, that the initial capital requirement to purchase capital equipment is a major concern for Cu Boxes. The paper also points out that Cu Boxes intends to borrow money to partially cover the purchase, which will make it a higher credit risk and will limit its lines of credit and loan options. The paper relates that, in Cu Boxes' automation dependent industry, the pace of obsolescence makes the purchase more problematic. The paper includes analysis charts.

Table of Contents:
Issue Overview
Capital Equipment Lease or Purchase
Machine Purchase
Conclusion

From the Paper
"Buying equipment can often be the best decision because of the equity position that a company receives in the equipment which, depending on the industry, could be substantial. This implies that the strongest advantages in purchasing capital equipment are the outright ownership and the extended tax benefits but for companies with cash flow concerns, the initial investment costs are or can be prohibitive ("Capital"). "

Tags:ownership, rule of thumb, interest rate, equity tax

Abstract
In this article, the writer uses a UOP simulation to launch a discussion of lease/buy decisions, including comparisons with purchases and when capital or operating leases are appropriate. The writer focuses on a specific company to evaluate the issues.

From the Paper
"The major assets of an organization including facilities and equipment among other items can be purchased or leased. In simple terms when a company purchases the asset it owns the asset outright and can dispose of it any way it chooses. When the company leases the asset ownership remains with the lessor. Companies considering how to finance their short and long-term strategies must consider whether purchasing or leasing is the best strategy and because there are two major types of leases whether ..."

Tags:lease, buy, capital leases, operating leases, assets

Abstract
The decision to lease equipment as opposed to buying it outright is a complex decision with benefits to both considerations. For companies that have a limited amount of capital or are constrained in their access to capital sources, leasing is the better option. For companies that have no capital issues and that are purchasing equipment that has a long life span, buying the equipment is the best option because the returns on the investment cover a longer period. This paper examines the positives and negatives of buying equipment and leasing equipment and discusses which option is best for different financial situations.

From the Paper
"Yet, there are considerations in both cases that might make the obvious choice the second option rather than the first depending on the individual conditions of each business. In very essential terms, leasing equipment and other capital investments preserves a company's capital position and allows the company to upgrade more often or to retool more rapidly and with less cost (Neely)."

Tags:lease, buy, simulation

Abstract
This paper discusses the various capital equipment and facility lease/purchase options for start-up businesses. The paper describes a target business that is an indoor tennis facility and needs all the requisite equipment necessary to start and operate it. The paper explains that the facilities themselves might better be purchases, while the equipment may be better leased. The paper mentions, however, that each business' financing methodology is unique.

From the Paper
"The decision to lease equipment as opposed to buying it outright is a complex decision with benefits to both considerations. For the leasing option, newly formed enterprises such as an athletic facility that has a limited amount of capital or are constrained in access to capital sources, leasing is the better option. For companies that have no capital issues and that are purchasing equipment that has a long life span, buying the equipment is the best option because the returns on the investment cover a longer period."

Tags:financing, operating, tennis