Case | HBS Case Collection | May 1997 (Revised May 2004)

Riverbend Telephone Company

by William J. Bruns Jr.

Abstract

An independent telephone company needs to acquire a new truck for use in telephone line installation and maintenance and must decide whether to buy or lease the truck. The company must address the rate of return in a regulated industry and the best accounting treatment if the truck is leased.

Keywords: Cost Accounting; Analysis; Cash Flow; Investment Return; Ownership;

Citation:

Bruns, William J., Jr. "Riverbend Telephone Company." Harvard Business School Case 197-104, May 1997. (Revised May 2004.)