Simulation: Lease vs. Buy Decision

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By buying this asset, Bonnesante will also have a benefit of claiming it as an asset depreciation whereas it will not be an option in operating lease since in the leasing option lessor has the benefit of claiming for depreciation, not lessee. SCENARIO 3: It is the sixth year of Bonnesante Company, and now it wants to convert into a fully integrated pharmaceutical company...
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It has also identified a plant but it needs to be upgraded. Also it is facing some cash flow crises that need to be solved also. At this time, the decision needs to be made whether to buy, lease or capital lease the plant. Moreover, cash flow crises need to be settled...
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