Lease vs. Own Analysis Using Excel-Based Tools

Lease vs. Own Analysis Using Excel-Based Tools allows you to make informed decisions regarding leasing versus owning using the latest Excel-based technology.

After selecting a specific property, a corporation or individual may have to decide whether to buy or lease that property. Both options have advantages and disadvantages, and each has a different cost. However, comparing the respective costs of leasing and buying is not an indicator of which option to choose. For example, even if the cost of buying the property exceeds the cost of leasing, the final choice may be to incur the higher relative costs of buying in order to gain advantages of ownership.

This course will explore the advantages and disadvantages associated with leasing or buying a property, and will cover different methods used to compare costs.

After completing this course, students will be able to:
•	Recognize the critical factors, both financial and nonfinancial, that influence the lease versus own decision
•	Interpret present values (PVs) of the cost of leasing versus the cost of owning
•	Calculate and interpret the yield (internal rate of return) of the differential cash flows after tax from leasing versus owning
•	Understand the importance of the sales price point of indifference between the leasing and owning alternatives

Other Online Education Courses
Sale Leaseback Analysis: User Perspective
Sale Leaseback Analysis: Investor Perspective
Commercial Investment Real Estate Taxation
Commercial Investment Real Estate Disposition Strategies
Understanding IRR and NPV