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Author(s)

Mark Jeffery

Susan Deutsch

Paolo Cuomo

This technical note illustrates the fundamentals of lease vs. buy decisions in technology and how they differ from the typical capital equipment lease vs. buy decision. This note is designed for instructors, and provides them with a background for an introductory lecture on information technology (IT) leasing. It can also function as a companion to the Kellogg cases "AMG, Inc. & Forsythe Solutions: Lease vs. Buy Decisions" and "Shilling & Smith Acquisition of Xteria Inc.: Data Center Technology Leasing."

Date Published: 12/31/2004
Discipline: Technology
Key Concepts: Decision Making, IT, Lease Versus Buy, Purchasing Decisions, Leasing Equipment, Lease Rate Factor, MACRS, Depreciation, Equity Insertion
Citations: Jeffery, Mark, Susan Deutsch, Paolo Cuomo. Technical Note: Lease vs. Buy Decisions for Technology. 7-404-753 (KEL263).