Reasons for Leasing

5. Reasons for leasing Aa Aa A successful lease agreement is created so that both the lessee and lessor reap some benefits. Tax and depreciation write-offs are some critical reasons for leasing, but there are several other qualitative reasons for leasing. Below are two situations in which a firm must decide whether to lease or to buy a particular asset. Based on your understanding of the advantages to leasing from a qualitative perspective, what is the firm likely to do in each situation-lease or buy? Assume all other quantitative factors remain constant. Company #1: DigiSurgi is a health care consulting company that trains hospitals on new digital surgical tools. The company needs to acquire new equipment to get the trainers accustomed to the technology so that they can transfer the know-how to the hospital staff. DigiSurgi should the new digital surgical equipment. Company #2: Kiran owns a medium-sized printing business. She owns three one-color (black) printers and needs a color printer for volume print production. She wants to keep the operating expenses related to the color printer low, so she should a color printer. 5. Reasons for leasing Aa Aa A successful lease agreement is created so that both the lessee and lessor reap some benefits. Tax and depreciation write-offs are some critical reasons for leasing, but there are several other qualitative reasons for leasing. Below are two situations in which a firm must decide whether to lease or to buy a particular asset. Based on your understanding of the advantages to leasing from a qualitative perspective, what is the firm likely to do in each situation-lease or buy? Assume all other quantitative factors remain constant. Company #1: DigiSurgi is a health care consulting company that trains hospitals on new digital surgical tools. The company needs to acquire new equipment to get the trainers accustomed to the technology so that they can transfer the know-how to the hospital staff. DigiSurgi should the new digital surgical equipment. Company #2: Kiran owns a medium-sized printing business. She owns three one-color (black) printers and needs a color printer for volume print production. She wants to keep the operating expenses related to the color printer low, so she should a color printer