Calculating the cost /benefit of a proposed Lease transaction can often be a difficult task, given the many variables facing a business.

However, Leasechoice have developed an analytic which is used to assist clients to make the right decision, and avoid costly misjudgements.

The “Cash v Lease” analysis takes into account factors such as:

• Depreciation
• Inflation rate
• Internal Rate of Return
• Term of Lease

to produce a Cost benefit comparison between use of an Operating Lease, and paying Cash for the equipment.

In the analysis below, based on a clients need to replace Office Furniture at a cost of $60,000, and using a modest IRR of 12%, the client would be more than $21,000 better off over 5 years, a benefit of over 29% when compared to the cash purchase alternative.

If you have a significant Asset purchase in mind, and would like to have a similar analysis run for your company, please contact :

Michael Levin
Sales Director
Leasechoice @ michaell@leasechoice.com.au