From The Lessee S Viewpoint The Relevant Discount Rate For Evaluating A Lease Versus Buy Decision Is The Essays and Term Papers

  • Analyzing Lease Versus Buy Decisions" Simulation Summary

    Analyzing Lease Versus Buy Decisions" Simulation Summary A. For a high-technology item, like computer equipment, is the lease option preferable from the very outset? Why or why not? Yes, because from the start companies are not profitable and do not receive tax breaks. To buy out right can be costly...

      961 Words | 4 Pages   Leaseback, Finance lease, Leasing, Depreciation

  • Lease versus Buy

    When an individual is trying to decide whether or not to lease or buy, he or she needs to know the purchase cost, the lease cost, as well as the interest rate of a loan that will be used to purchase the item. The residual value of the item also must be known up front to help determine if leasing is the...

      1292 Words | 4 Pages   Leasing, Net present value, Expense, Leaseback

  • Real Estate and Capital Structure Decisions – Lease-Versus-Buy Analysis

    IV. References 5 V. Appendix 6 I. Introduction Overview This case provides real estate market data for the analysis of an office lease-or-buy decision. The case demonstrates what is known as the “leasing puzzle” – the answer simply being that the two forms of financing are not cost equivalent...

      1163 Words | 4 Pages   Finance, Expense, Real estate investing, Valuation (finance)

  • Simulation: Lease vs. Buy Decision

    needs to acquire mainframe computer. Now the decision needs to be taken to either lease or buy the mainframe computer. SOLUTION 1: As a CFO of Bonnesante Research company, by taking my colleagues opinion into consideration, I have decided to lease the mainframe computer for 18 months instead of...

      1291 Words | 4 Pages  

  • Analyzing Lease vs. Buy Decision

    Analyzing Lease vs. Buy Dec To buy or not to buy is the question for many companies acquiring assets for their business. Equipment and other assets are extremely important when a company is trying to get off the ground in a new business. The chief executive officer would have to ask how would...

      1654 Words | 5 Pages   Expense, Leaseback, Depreciation, Interest

  • Analyzing Lease vs. Buy Decisions

    Asset acquisition is important for every business. One can either buy the asset or lease it. Comparing the present value of the outflows involved with the lease and buy options is a good way to decide but other factors are involved too. I completed the Financial Analysis for Managers simulation which...

      832 Words | 3 Pages   Expense, Present value, Leaseback, Finance

  • "Analyzing Lease vs. Buy Decisions" Simulation

    The simulation in lease versus buy option is set up to enhance our knowledge in the decision-making aspects of evaluating the lease versus buy options. The Bonnesante's company will show decision-making options for leasing or buying a computer. Also, deciding on how to acquire the spectrometer. In addition...

      1310 Words | 4 Pages   Finance lease, Capital budgeting, Net present value, Leasing

  • Analyzing Lease vs. Buy Decisions Simulation

    Deciding whether to lease or buy is a decision most companies face when having to acquire new assets or take on additional liabilities. The ultimate goal is to make the most cost-effective choice that will best benefit the company and its stakeholders. To do so, those making the decisions need to be aware...

      1285 Words | 4 Pages   Leaseback, Expense, Depreciation, Internal rate of return

  • lease or buy

    DECISIONS TO LEASE OR BUY Main Advantage of Leasing and Buying/Purchasing Business Facility The main advantage of leasing a business facility is that your initial outlay of cash to gain the use of an asset is generally less for leasing than it is for purchasing. However, perhaps the main advantage...

      1385 Words | 4 Pages   Depreciation, Leasing, Renting, Lease

  • Buy or Lease?

    To Buy or to Lease? The Risk. Malaysia Airlines decision to lease whether a capital or operating rather than buying the asset arise because of the risk decision and the decision made in the upper management. When making the decision to buy or to lease the company must not only consider the financial...

      755 Words | 2 Pages   Leasing

  • Analyzing Lease vs. Buy Decisions Simulation: Bonnesante Research

    Introduction Everyday companies are faced with the decision of whether to lease or to buy when acquiring assets. By being able to calculate the best decision for both options, a company will be able to make the most profitable choice. However some tough questions will need to be answered like what is...

      1039 Words | 3 Pages   Depreciation, Leaseback, Leasing, Asset

  • Lessee Ltd.- Lease Case

    | Lessee Ltd.- Lease Case | | | | | | 1. Was the junior accountant’s analysis correct? Why or why not? No, the junior accountant’s analysis is not correct in classifying the lease as an operating lease in accordance with IFRS. Whether or not a lease is classified as a finance...

      954 Words | 3 Pages   Leasing, International Financial Reporting Standards, Finance lease, Amortization (business)

  • Discount Rate

    The discount rate Main article: Discount rate The rate used to discount future cash flows to their present values is a key variable of this process. A firm's weighted average cost of capital (after tax) is often used, but many people believe that it is appropriate to use higher discount rates to...

      498 Words | 2 Pages   Net present value, Rate of return, Discounting, Yield curve

  • Lease vs Buy

    When purchasing a new vehicle, many consumers are faced with many choices of financing, and part for the decision that needs to be addressed is buying or leasing. In this paper we will look at the differences between buying and leasing a new automobile. Automobiles In America, cars have become a way...

      1886 Words | 5 Pages   Leasing, Finance, Value added tax, Capital budgeting

  • Lease vs. Buy Assignment

    issues such as, whether to trade in a current vehicle, how much is the current trade-in worth, and lease or buy options. This paper will examined and analyzed the advantage and disadvantages of the lease vs. buying an automobile. Leasing vs. Buying a Car There are many pitfalls that today’s consumer...

      1778 Words | 10 Pages   Leasing, Net present value, Present value, Discounted cash flow

  • Buy or Lease a Car

    Cars, trucks, vans, SUV's… almost everyone will own or lease one in their lifetime. The biggest problem is the decision whether to buy or lease the automobile. Many people are faced with this question. Buying and leasing a car both have many positive and negative attributes. The beauty of it is that...

      632 Words | 2 Pages   Vehicle insurance, Insurance, Leasing

  • Lease vs. Buy Analysis

    Case #34:  Lease versus Buy Analysis  Why Buy It When You Can Lease It?    David Bajak  Katrina Bishop  Gary Hsieh      Question 1:  What are the different kinds of leases available and which one would be best suited for Paulo’s restaurant?  Explain why?    There are two major types of leases: operating lease and financial lease...

      6827 Words | 18 Pages   MACRS

  • Lease vs Buy

    Running head: ASSIGNMENT # 2: LEASE VS. BUY ASSIGNMENT Assignment #:2 Lease vs. Buy Assignment by Janet L. Miller PMAN 650 – Financial and Strategic Management of Projects Professor Martine Anderson University of Maryland University College July 24, 2011 Table of Contents: Introduction……………………………………………………………………………...

      2544 Words | 9 Pages   Interest, Leasing, Annual percentage rate, Renting

  • Buy vs Lease Scenario

    BUY VS LEASE SCENARIO * What recommendation does the calculator make for you? Here's why: Financing the purchase of a vehicle generally requires a down payment in the form of cash or a trade-in. In contrast, with leasing a down payment is usually not required (but is offered as an optional way...

      367 Words | 1 Pages   Interest

  • Risk Adjusted Discount Rate

    THE DIRECT D E T E R M I N A T I O N of RISK-ADJUSTED DISCOUNT RATES and LIABILITY BETA RUSSELL E. BINGHAM T H E H A R T F O R D FINANCIAL SERVICES G R O U P Table of Contents Page 2 3 5 7 8 11 12 13 14 14 15 16 17 17 18 Subject Abstract 1. Summary 2. Total Return Model 3. After-Tax Discounting...

      7523 Words | 34 Pages   Corporate finance, Present value, Net present value, Discounting