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.