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Electrodealer Logistic Center: Buy or Lease
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Reference: F-775-E
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Year: 2004
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Number of pages: 7
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Geographic Setting: España
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Publication Date: Sep 3, 2004
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Source: IESE (España)
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Type of Document: Case
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.
Learning Objective
Show the students how to analyze a project of costs, with important strategy implications.