Creating Capacity and Capital Budgeting Considerations

Companies create capacity through replacing existing equipment or purchasing new equipment.  Due to the high cost of these decisions, as well as their impact on cash flow, it’s important to compare leasing and purchasing alternatives, evaluating capital alternatives using the net present value method and capital alternatives using the payback period method.

In this course you learn how successful companies in the innovation economy create the capacity to produce new products and services through lease vs. buy analysis.