Lease vs Buy Decision Tool with Tax & Depreciation Effects
Seed: Asset cost, lease terms, purchase price, tax rate, depreciation schedule; NPV calc: compare lease payments vs purchase (capex + opex) over useful lifeADVERTISEMENT - IN-ARTICLE
Implementation Guide
Compares leasing vs purchasing assets, modeling cashflow, tax depreciation shields, maintenance, residual value, and balance-sheet impacts under different accounting standards. Produces NPV, IRR and payback metrics both pre- and post-tax, and shows lease accounting implications (right-of-use). Helpful for procurement and finance teams to decide optimal acquisition strategies considering tax and accounting outcomes.
💡 Expert Q&A Insights
Q: \
Should I include maintenance cost escalation?\" \"
Q: Yes—model maintenance with inflation assumptions and include in total cost of ownership.\"\n\"
Does it factor residual value risk?\" \"