Sensitivity and Lease Vs Buy

Question 1

Tax allowable depreciation on Lease vs Buy

Answer 1

On a lease, there is no TAD. On purchase, there is

Question 2

Benefits and Disadvantages of SA

Answer 2

Benefits:
Simple, quantifiable measure to make subjective decisions
Disadvantages:
Assumes variables change independently of each other (unlikely)
Doesn’t provide a clear answer
Doesn’t estimate how likely a variable is to change