Alex opened Excel to calculate the .
Midwest Logistics signed the lease. Alex saved the cash, the warehouse got built, and the fleet stayed green. lease vs buy analysis corporate finance
The CEO, Sarah, wanted 50 new electric vans. "Buy them," she’d said. "We own our assets. We don’t rent." Alex opened Excel to calculate the
Alex started with the purchase model. If Midwest Logistics bought the vans outright for $3 million, they’d get the . Under current tax laws, they could front-load the depreciation, reducing their taxable income significantly in the first few years. The CEO, Sarah, wanted 50 new electric vans
The real kicker? . In the fast-moving world of EV tech, these vans might be paperweights in five years. With a lease, Midwest could simply hand the keys back at the end of the term. The "Residual Value"—what the vans are worth at the end—was the leasing company’s problem, not Alex’s. Chapter 3: The NPV Showdown