Spreadsheet to financial modeling sceneries to estimate leasing operations for acquisition computer equipment

Computer and Communications equipment are the backbone for any Company (Regardless of their size). These elements allows Enterprises to operate in order to produce goods and services that are then offered to create value and in consequence profits. Those elements are even more relevant for Companies orientated to the Information Technology (I.T.) sector. As any other active, computer equipment depreciates with time, and more important: it gets obsolete very fast, as technological advances are incorporated to the mainstream consume products at an accelerated speed. In the light of the two facts mentioned previously, it becomes vital to the Enterprise to make the best decisions about how to invest its resources in order to make the best from the technology available and at the same time, keep the pace to avoid an “obsolescence cost” if it takes too long to update its equipment. Common practice now is to lease the equipment, in other words: To lease the benefit of the use of the equipment, the operating Lease is a better financial choice. Then it becomes mandatory to establish criteria to perform the more convenient negotiation when financing this kind of operations, is carried out. The current work, proposes to use Information & Communications technology tools in order to help Management to make the best decision regarding costs and convenience comparing two options for lease operations: 3 and 4 Years.

Author: 
Arturo García-Santillán, Osmar E. Arandia-Pérez and Ramón Guzmán-Agíss
Volume No: 
02
Issue No: 
03
Paper Number: 
0308
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