Peru22

Capital Assets—Lease versus Purchase Analysis

Review the following scenario:

Healthcare organizations face the challenge of acquiring capital to finance equipment purchases. As the Director of Rehabilitation Services in a hospital outpatient clinic, you have identified the need to acquire new isokinetic exercise equipment. You are preparing a briefing for the Assistant Administrator to discuss lease options versus purchase options for an exercise equipment system that would cost $25,000 to purchase. The useful life of the equipment is 5 years.

Based on your analysis of the scenario, the module readings, Argosy University online library resources, and the Internet, address the following:

• Describe different leasing options.
• Discuss the advantages and disadvantages of lease versus purchase.
• Make a decision about lease or purchase and present that option to the Assistant Administrator.
• Summarize the central factors that shaped your decision to recommend lease or purchase.

Write a 3–5-page report in Word format. Utilize a minimum of 2–3 scholarly sources in your research. Your paper should be clear, concise, and organized; demonstrate ethical scholarship in accurate representation and attribution of sources; and display accurate spelling, grammar, and punctuation. Apply APA standards to citation of sources.