Analysis of lease versus buy options for procurement of radio assets for the Marine Corps Air Station at Yuma, Arizona.
Kanne, Michael Raymond
Robertson, James Clay
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The Marine Corps Air Station at Yuma, Arizona is contemplating whether it is more advantageous to purchase or to lease additional needed radio assets and associated maintenance services. In order to analyze the situation from an economic standpoint, a cost-benefit study was performed on the alternatives available. Using the Net Present Value concept, the current value of each alternative was determined from the cost data available. In addition, several non-quantitative factors were evaluated in relation to what additional effects they might have on the economic determinations. Based on the data available, and after considering the potential effects of the non-quantifiable factors, the most favorable alternative was determined to be to purchase the needed radio assets and to perform any necessary maintenance at the government maintenance facilities at the Marine Corps Air Station at Yuma.
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