                                MEMORANDUM

Date:       October 28, 1993

From:       Ted Finamore [73123,2224]

To:         Russ Bellew

Subject:    Lease vs Buy WKS



Russ:
     I originally designed this spreadsheet to evaluate our company s auto leasing
policy.  Basically, I assume that any cost of leasing must be compared to a cost of
debt because the funds used to make the lease payments have an implicit cost built
in.  

     Rather than a working model, I think that you should use my spreadsheet as a
guideline in developing your own.  Although, it should give you pretty accurate results
because autos & laptop computers are both depreciated the same way for tax
purposes (MACRS 5 yr).  In other words, the tax assumptions that I ve made should
still be valid (until the next tax law change.)

     Anyway, just update the table of assumptions and enter a stream of lease
payments in cells e24..e29.  If you have any questions, drop me a line.

     Good luck!  

PS--Any good finance text will offer a discussion of lease vs buy analysis.