Provide a recommendation for management.

25 Lease Versus Buy Analysis Why Buy It When You Can Lease lt? Joe Trevino opened his little, "upscale" Italian restaurant almost 25 years ago in the heart of New York City. His specialty was the freshly baked bread oozing with homemade garlic butter and, of course, the delicious varieties of pasta and lasagna. The ambience and aroma were simply out of this world and kept bringing the customers back for more. An immigrant from southern Italy, Joc put all his savings into his busi- ness. With the help of his wife, Sylvia, and their son Henry, Joe kept the restaurant running smoothly and helped it gain tremendous popularity among many New Yorkers. Joe was always proud of the everything in his restaurant, right from the property on which it stood down to the plates on which the food was served. Everything had been paid for with his own hard-earned cash. Being from the "old schoo," Joe always believed that to be a debtor is to be a slave to the lender. He there- fore chose to save up and pay cash for whatever was needed. fact that he owned Over time, the restaurant's clientele grew significantly and wait times during peak periods became unbearably long. After careful considera tion, Joe relocated the restaurant to a much larger site with ample park ing and tables. As always, the move was financed with cash. Then, about three years ago, Joe retired and turned over the business to Henry. Having watched his dad nurture the business, Henry kept up the family tradition of excellent service and personal attention to details 122