Final answer:
Leasing is a more attractive option if it takes a long time to profit from the equipment, if the machine has a short lifespan, or if the owner wishes to avoid interest charges. Leasing also benefits practices needing continual equipment uptime and those preferring to conserve cash reserves.
Step-by-step explanation:
When a practice owner is determining whether to lease or buy a new piece of equipment, several factors would make leasing a more attractive option. First, if it will take a long time to make a profit on the machine (Option 1), this implies the equipment will have a delayed return on investment, making leasing to avoid up-front costs a viable option. Second, if the machine has a short expected life span (Option 2), this would suggest that the technology becomes outdated quickly, so leasing allows the practice to upgrade without committing to a depreciating asset.
An important consideration is if the practice has enough cash to purchase the machine (Option 3), this might make buying seem attractive, but hoarding cash for uncertainty can also be prudent. In cases where the practice cannot be without the machine for even a day (Option 4), leasing may guarantee quicker replacements or maintenance services. Lastly, if the practice owner is reluctant to pay interest charges on anything (Option 5), leasing can offer a path to access the equipment without incurring traditional debt interest.