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Avnet Computer

Eades, Kenneth M.,...

Case

Avnet Computer

Eades, Kenneth M.; Marston, Felicia C.

F-1125 | Published February 29, 1996 | 10 pages Case

Collection: Darden School of Business

Product Details

A financial manager is faced with a variety of purchase plans for obtaining new computing equipment: a traditional operating lease, the straight purchase of the equipment, and a new leasing product called TMMS (Technology Management Maintenance Service). The case can be used in an introductory finance course with a focus on the proper discount rate and cash flows, or in an elective course with an emphasis on the obsolescence risk and the sources of value of TMMS.

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