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Companies create capacity through replacing existing equipment or purchasing new equipment. Due to the high cost of these decisions, as well as their impact on cash flow, it's important to compare leasing and purchasing alternatives, evaluating capital alternatives using the net present value method and capital alternatives using the payback period method.
In this course you learn how successful companies in the innovation economy create the capacity to produce new products and services through lease vs. buy analysis.
Learning Objectives
- Articulate the process for acquiring or replacing new capital equipment.
- Explain the time value of money and its impact on decision making.
- Compare leasing and purchasing alternatives for new capital equipment.
- Evaluate capital alternatives using the net present value method.
- Evaluate capital alternatives using the payback period method.
Last updated/reviewed: March 12, 2024
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Prerequisites
Course Complexity: Foundational
No advanced preparation or prerequisites are required for this course.
Education Provider Information
Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA
95113
Contact:
For more information regarding this course, including complaint and
cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to
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David FiondaCloud Accounting Expert