The continuous need of contractors for efficient and up to date equipment to complete the thousands of dollars in concrete construction jobs they handle each year imposes an important question. Is it more economical to purchase such equipment outright or is it cheaper to operate under a lease plan? Most contractors would admit that although the cost of new machinery is high, it is well worth the investment in terms of increased power and productivity. Therefore, the problem of purchasing equipment is a problem of when and how to make the replacements. Knowing when to replace old equipment is only half the battle. Other problems arise at the time the purchase must be made. Will the cash needed consume most or all of a contractor's capital? Because of this problem, contractors find that they must continue to operate with obsolete machines because the cost of new ones is too high. Leasing has become a new and highly adaptable arrangement for supplying the contractor with the costly equipment he needs to do business. The chief advantage is that it frees working capital for other uses. Another advantage of leasing is that it protects the balance sheet position. Still another value of a lease arrangement is that it acts as a hedge against inflation. In addition, leasing will eliminate the risk of operating with obsolete equipment. Leasing will also simplify cash accounting by allocation equipment costs to specific contracts.