Buy or lease out decision

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2016 Dear Experts,

I have a small query regarding leasing a machinery or buying out in asset management industry.

In case the company decides to buy out the machinery against the current scenario of leasing the same, then what all factors need to considered and how to come to a conclusion? Also kindly outline the steps to be taken to proceed with the same.

Thanks.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

17 February 2016 If you have funds to buy the machinery and your business is currently running successful then buy the machinery.
If you don't have funds or you are a new one in the business go for leasing.

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2016 Thank you Seetharaman Sir for your reply.

But for my concern, the company is ready to invest in new machineries. What i would like to convey the management is whether buying will be a good decision or continue with the leasing? Since Industrial assets involve huge cashflow.

Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

17 February 2016 Work out the best option considering the cost and tax benefits and availability of funds. If funds are available buy option will be the best.

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2016 Dear Sir,

As you mentioned I would like to know the workings in details for the same. Can you kindly help me out?

In case if you need any actual figures I may let you know that as well.

Thanks.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

17 February 2016 Try the link to calculate.

http://homepages.stmartin.edu/fac_staff/dconant/BA435/lessee.htm

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

17 February 2016 Try the link.................

Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2016 Hi Sir,

I am unable to view the link. Kindly resend it.

Thanks