Electrodealer Logistic Center: Buy or Lease

Electrodealer Logistic Center wants to expand its activity with a new 20 m. warehouse. The question is whether to buy or lease? The company has an excess of cash and no debt. Decisions to take: Buy or lease? With debt or without debt? Strategy implications of these alternatives. Risk and returns of both alternatives.
Collection: IESE (España)
Ref: F-775-E
Format: PDF
Number of pages: 7
Publication Date: Sep 3, 2004
Language: English

Description

Electrodealer Logistic Center wants to expand its activity with a new 20 m. warehouse. The question is whether to buy or lease? The company has an excess of cash and no debt. Decisions to take: Buy or lease? With debt or without debt? Strategy implications of these alternatives. Risk and returns of both alternatives.
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Year: 2004
Geographic Setting: España

Learning Objective

Show the students how to analyze a project of costs, with important strategy implications.

Electrodealer Logistic Center: Buy or Lease

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"Electrodealer Logistic Center: Buy or Lease "