OT: Toronto street lights sale

James Knott james.knott-bJEeYj9oJeDQT0dZR+AlfA at public.gmane.org
Mon Feb 22 15:08:23 UTC 2010


Robert Brockway wrote:
> On Sun, 21 Feb 2010, William Muriithi wrote:
>
>> Seriously, its not that complicated. I would assume they were given
>> the terms of how much it would cost them to have the streets lighted
>> annually after the sale.  At that point, it was just a matter of
>> putting the two alternatives into their present value and it would
>> have been apparent which of the two alternative was superior. How did
>> they get it this wrong? Could I be blind to some facts that someone
>> here may care to enlighten?
>
> I've seen apparently bizarre decisions made with computers such as 
> leasing the systems instead of buying them when it would clearly cost 
> more to lease them over the term of the lease.  There are at least two 
> answers for this phenomenon:
>
> (1) Leasing comes from a different budget to purchasing.
> (2) There are tax incentives for one decision over the other.
>
> Even if (1) is artificial (2) is a genuine consideration.   After tax 
> adjustments may make the apparently bizarre decision actually fiscally 
> sound.
It's also capital vs expense money.  Also, if leased, then support is 
often included and  you don't have to worry about disposal at end of 
service life.

Another *BIG* benefit is all the "refurbs" on sale that are great for 
loading with Linux!  ;-)



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