Alex knew it wasn't that simple. This was a classic , and the numbers had a story of their own to tell. Chapter 1: The "Buy" Narrative
Midwest Logistics signed the lease. Alex saved the cash, the warehouse got built, and the fleet stayed green. lease vs buy analysis corporate finance
The real kicker? . In the fast-moving world of EV tech, these vans might be paperweights in five years. With a lease, Midwest could simply hand the keys back at the end of the term. The "Residual Value"—what the vans are worth at the end—was the leasing company’s problem, not Alex’s. Chapter 3: The NPV Showdown Alex knew it wasn't that simple
However, there was the . That $3 million would be sucked out of their working capital. They wouldn't be able to invest in the new automated warehouse project, which had a projected IRR (Internal Rate of Return) of 15%. Chapter 2: The "Lease" Alternative Alex saved the cash, the warehouse got built,
The CEO, Sarah, wanted 50 new electric vans. "Buy them," she’d said. "We own our assets. We don’t rent."