Describe factors Caledonia must consider if it were to lease vs. buy.

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If Caledonia were to lease vs. buy, there are a number of factors that must be considered. These include the length of time for which the asset will be used and what portion of the life cycle it is in; any associated costs such as taxes, fees or setup costs; maintenance requirements and availability of service contracts; whether the leased asset can be upgraded at any point in time; whether leasing will provide an advantage over buying outright in terms of access to funding or tax benefits; who is responsible for repairs and updates during the lease period; and how easy it is to terminate a lease arrangement compared with selling an asset.