Rock Creek Golf Club.

REVIEW OF FACTS Rock Creek Golf Club is a public golf course owned by a private company and managed by Lee Jeffries. The case entails a debate about the golf carts used to take players around the course instead of walking around. The carts they already owned were old and there was a need for new golf carts. Approached by two salesman, Lee Jeffries was forced to chose to make a deal with one of …

…determining whether one should buy or lease something. I would recommend that Mr. Jeffries take all the analysis he can consider into account before making his decision keeping in mind that the revenues and expenses he will generate will be the same regardless of whether he leases or buys the carts. I would then pick the option with highest NPV and with the payments for both principal and interest that make sense for his company.