Microcomputer-based software to perform lease versus buy analysis

The primary purpose of this paper is to present a computerized lease-versus-buy program utilized by the Defense Contract Audit Agency to monitor defense contractor data processing hardware procurement. The main points of the paper shall pertain to the financial elements incorporated into the software, reports generated, and the resulting lease-versus-buy decision. Discussion of the lease-versus-buy process shall relate primarily to the procurement of data processing equipment. The approach taken in the lease-versus-buy decision process for procuring data processing equipment is basically no different from the methodology used in acquiring other types of capital equipment. Hence, the proposed microcomputer-based program used to performed lease-versus-buy analysis for data processing equipment is suitable for industrial equipment procurement, as well.