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Part: III Investment Decisions > Examining a Business Case: Investment

Chapter 11. Examining a Business Case: Investment

Business case analysis is one of the most important activities a finance department can undertake to support management decision making. A business case can take any of a variety of forms, depending on the question that's been asked and the decision that needs support.

For example, a very basic question on the use of capital is “Should we lease a copy machine or should we buy one?” Although it may seem trivial, the answer to the question depends in part on an analysis of the cost effects of purchasing versus leasing. This is because there are tax implications to a capital expenditure that differ from those of an operating lease.


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