Should You Lease Or Buy Equipment?U.S. Small Business Administration, Office of Business Development, 1992 - Industrial equipment leases - 5 pages |
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Common terms and phrases
Advantages of Leasing alternative asset assumptions Average after tax balance sheet book value Cancellation cash outlay compare compounded annually Cost Analysis cost of capital Costs of Leasing deductible as operating depreciation Disadvantages of Leasing Discount Factor discounted cash flow equipment leasing Evaluation example Figure financial lease five percent interest full payout lease full term further advantage go with ownership gross lease interest rate invest today investment tax credit kind of lease lease agreement lease arrangements lease payment lease term lease usually leased equipment leasing business legal obligation lessee lessor loan maintenance Net Present Value number operating lease original cost payment due payments are deductible Periodic payments present value calculations programs provides publication purchase Renewal options sale and leaseback salvage value take advantage tax benefits tax cost tax liability tax rate tax savings terest tion Treatment of Leases true lease Value of $1 value of costs value of money