The cash flows considered in a lease versus own analysis are:

Question

Quizplus · Accepted Answer

The correct elements to consider in a lease versus own analysis include the purchase price, the difference in cash flow from operations over the holding period (which captures the operational cost differences between leasing and owning), and the cash flow from the sale of the asset (if owned). These elements capture the initial cost, operational cost differences, and the eventual return or cost at the end of the holding period.

The Cash Flows Considered in a Lease Versus Own Analysis