EVALUATING A PLANT EQUIPMENT LEASE.

Many industrial organizations, including plant engineering departments, consider leasing as an alternative to purchasing for acquiring lift trucks and other types of plant equipment. In many cases, the primary interest lies in having the use of the equipment over a specific period, not necessarily its ownership. This final article of a two-part series illustrates the discounted-cash-flow method of evaluating an equipment lease and comparing its cost with that of a financed purchase. An example analysis is included in the article.