Buy & Care

7.08 Rental vs Purchase Analysis: TCO Decision Model and Cash Flow Optimization

Financial analysis of rental vs purchase decisions using 3-year project horizons, NPV calculations, and Lensrentals/ShareGrid pricing data.

by Daoming
June 25, 2024

Rental vs Purchase Analysis: TCO Decision Model and Cash Flow Optimization

Content to be added - This article will provide financial analysis tools for rental vs purchase decisions.

Article Outline

1. Total Cost of Ownership Model

  • 3-year project horizon analysis
  • Equipment depreciation curves
  • Maintenance and service costs
  • Insurance and storage expenses
  • Opportunity cost calculations

2. Cash Flow Analysis

  • Upfront capital requirements
  • Monthly rental expense patterns
  • Tax implications and benefits
  • Working capital optimization
  • Financing vs leasing options

3. Market Data Analysis

  • Lensrentals pricing structure
  • ShareGrid peer-to-peer rates
  • Local rental market comparison
  • Seasonal pricing variations
  • Volume discount availability

4. Decision Framework

  • NPV comparison methodology
  • Break-even point calculation
  • Risk assessment factors
  • Usage frequency thresholds
  • Portfolio optimization strategies

This article structure is ready for in-depth content development.