Problem 1: What risks and uncertainties should be considered while making a lease vs. buy decision? How do these risks and uncertainties impact capital budgeting?
Problem 2: What is the advantage of computing the present value of outflows in making lease vs. buy decisions?
Problem 3: In what circumstances is a capital lease a better alternative to an operating lease? Under what circumstances is a capital lease a better alternative than buying an asset?
Problem 4: How do qualitative factors like the condition of an asset impact a final lease or buy decision?