A lease versus buy decision methodology for the Army: a proposal.
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Authors
Clifton, Herbert Charles
Subjects
Lease versus Buy
Cost Benefit analysis
Cost Benefit analysis
Advisors
Carrick, P.M.
Date of Issue
1979-03
Date
Publisher
Monterey, California. Naval Postgraduate School
Language
en_US
Abstract
The Army currently does not have a prescribed uniform
methodology to determine the lease versus buy financing of items
procured from private industry. Also, when lease versus buy
decisions have to be made, the decision is often a separate one
after the system has been chosen by a cost-benefit analysis.
Discount rate, salvage value, tax rates, depreciation, and
risk are all elements that directly affect the lease versus buy determination in both industry and government transactions.
However, total agreement as to the application of these
elements to the final decision is lacking within the Army.
Based on the literature available, a lease versus buy
methodology is determined. Also, it is shown how this method
should be part of a one step cost-benefit analysis instead
of a two step method to be used by the Army when leasing is
a viable financing alternative.
Type
Thesis
Description
Series/Report No
Department
Management
Organization
Naval Postgraduate School (U.S.)
Identifiers
NPS Report Number
Sponsors
Funder
Format
Citation
Distribution Statement
Approved for public release; distribution is unlimited.