A Guide for Air Force Lease Versus Buy Decisions.
Abstract
This thesis reviewed prior Air Force cost-benefit analysis procedures for a lease versus buy decision. Specifically, it looked at the analysis supporting the Air Force's decision to lease 120 replacement aircraft for the CT-39 fleet. The analysis used an after-tax methodology to ensure a government perspective was taken. The CT-39 analysis was a form of pre-tax methodology that did not accurately capture all the lost revenue at the Treasury resulting from the depreciation deductions available with a lease. The results of the analysis indicate that an Air Force's perspective always results in a decision to lease but the government perspective results in a decision to buy at discount rates below 8 percent and a decision to lease at rates above 8 percent.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1984
- Accession Number
- ADA151874
Entities
People
- J. S. Shedden
Organizations
- Air Force Institute of Technology