Economic Analysis

Lease versus buy
Acquisitions of business equipment and automobiles often require  analysis to determine the true cost of ownership. We also will determine if the transaction must be shown as a purchase on the client's financial statements irrespective of the terminology of the paperwork. Many times a "lease" is merely a disguised purchase with unexpected tax and financial statement implications.

Present Value Analysis
Our clients often ask whether it is better to defer a purchase or sale based upon apparently larger benefits in the future. We analyze the options presented and advise them of the largest benefit, given an assumed interest rate during the period in question. Life insurance presentations are notorious for ignoring the cost of deferring payout until the future in exchange for premiums paid now. The rates of return in whole life policies when calculated using a present value analysis are often surprisingly low.

Return on Investment
We can analyze returns from your investment portfolio or assist you with a decision to purchase a piece of equipment designed to reduce cost to determine the true economic profit from the choice.

Economic Order Quantity
Companies with inventories are faced with the optimum order size considering the cost to process and ship small purchases with the offsetting cost of storage and capital investment in large orders. We have tools to recommend order points which minimize inventory holding costs.