How do you communicate and present your lease vs buy analysis in Excel to stakeholders and decision makers?

1 Use a standard template

One of the first steps to communicate and present your lease vs buy analysis in Excel is to use a standard template that covers the essential elements of the comparison, such as the cash flows, the net present value (NPV), the internal rate of return (IRR), and the breakeven point. A standard template can help you organize your data, avoid errors, and ensure consistency and accuracy. You can find many free or paid templates online, or create your own based on your specific needs and preferences.

2 Highlight the key assumptions and inputs

Another important step to communicate and present your lease vs buy analysis in Excel is to highlight the key assumptions and inputs that drive your calculations, such as the interest rate, the inflation rate, the depreciation rate, the tax rate, the maintenance costs, and the residual value. These assumptions and inputs can have a significant impact on the outcome of the analysis, and they may vary depending on the type, duration, and terms of the lease or purchase. Therefore, you should clearly state and justify them, and show how they affect the results. You can use different colors, fonts, or formats to distinguish them from the outputs, and include comments or notes to explain them.

3 Show the sensitivity and scenario analysis

A third step to communicate and present your lease vs buy analysis in Excel is to show the sensitivity and scenario analysis that demonstrate how the results change under different conditions or assumptions. Sensitivity analysis shows how the NPV or IRR changes when one variable changes, while scenario analysis shows how the NPV or IRR changes when multiple variables change. These analyses can help you assess the risks and uncertainties involved in the lease or purchase decision, and identify the optimal or worst-case scenarios. You can use charts, tables, or data tables to display the sensitivity and scenario analysis, and highlight the key findings or recommendations.

4 Use charts and graphs to visualize the data

A fourth step to communicate and present your lease vs buy analysis in Excel is to use charts and graphs to visualize the data and make it easier to understand and compare. Charts and graphs can help you show the trends, patterns, and relationships among the data, and emphasize the main points or differences. You can use different types of charts and graphs, such as line charts, bar charts, pie charts, or scatter plots, depending on the nature and purpose of the data. You should also use appropriate titles, labels, legends, and colors to make your charts and graphs clear and informative.

5 Summarize the results and conclusions

A fifth step to communicate and present your lease vs buy analysis in Excel is to summarize the results and conclusions of the analysis, and provide your recommendations or suggestions. You should highlight the key metrics and indicators that support your decision, such as the NPV, the IRR, the breakeven point, or the cash flow advantage. You should also explain the pros and cons of each option, and how they align with your business goals and strategies. You can use a summary table, a dashboard, or a report to present your results and conclusions, and include a call to action or a request for feedback.

6 Prepare for questions and objections

A final step to communicate and present your lease vs buy analysis in Excel is to prepare for questions and objections that may arise from your stakeholders and decision makers. You should anticipate the common or potential questions and objections that may challenge your assumptions, inputs, methods, or results, and have ready answers or evidence to address them. You should also be open to feedback and suggestions, and acknowledge the limitations or uncertainties of your analysis. You can use a Q&A sheet, a backup slide, or a reference document to prepare for questions and objections, and show your confidence and credibility.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?