Due to business expansion, PI has outgrown its current business facilities. A larger retail shop next door to PI's current retail showroom is available for lease by the shopping center. Also, the PI owners have located a much larger retail showroom space for sale across town from their current location.

Purchasing the new space would require a mortgage. The monthly mortgage expenses would be greater than monthly expenses for a new leased space. However, the purchased space is bigger and would accommodate PI growth for more than ten years.

Pat and Gale asked you to evaluate advantages and disadvantages of leased v. purchased space, and to analyze the risks and liabilities of each option.

Instructions:

A. Comparison Chart

Create acomparison matrix chart that compares at least 3 advantages of leasing the new space v. 3 advantages of purchasing the new space.

• List each advantage on the chart and explain why/how it is an advantage.

You may use the chart format in the hyperlink above, or create a similar chart, or create an excel chart.

B. Summary

Recommend to PI owners either leasing or purchasing new space.

• Justify and explain why/how your recommended option imposes reduced risks and liabilities for PI.