Problem

Scenario: Healthcare organizations face the challenge of acquiring capital to finance equipment purchases. As the Director of Rehabilitation Services in a hospital outpatient clinic, you have identified the need to acquire new isokinetic exercise equipment. You are preparing a briefing for the Assistant Administrator to discuss lease options versus purchase options for an exercise equipment system that would cost $25,000 to purchase. The useful life of the equipment is 5 years.

Questions:

Describe different leasing options.

Discuss the advantages and disadvantages of lease versus purchase.

Make a decision about lease or purchase and present that option to the Assistant Administrator.

Summarize the central factors that shaped your decision to recommend lease or purchase.