Advantage of leasing an asset, Finance Basics

Advantage of Leasing an Asset

1. The company has the choice to purchase assets on the expiry of the lease period at that time it will identify the viability of the asset.

2. The arrangement may sure lessor bears the maintenance costs reducing the companies operating costs.

3. It does not bind the company's funds in an asset.

4. The company as lessee will enjoy the lease charges as permit able expenses hence reducing taxable liability and tax income.

5. Lease finance enables the lessee to employ the asset to make financial surpluses that may then be required to buy assets.

6. It is generally a long-term arrangement that enables the company to plan returns expected and operations that may be carried out.

Posted Date: 1/29/2013 4:54:26 AM | Location : United States







Related Discussions:- Advantage of leasing an asset, Assignment Help, Ask Question on Advantage of leasing an asset, Get Answer, Expert's Help, Advantage of leasing an asset Discussions

Write discussion on Advantage of leasing an asset
Your posts are moderated
Related Questions
What is the need for documents in international business? Substantiate your answer with suitable examples.

(a) A couple has just celebrated their 25th wedding anniversary. What is the probability of them celebrating their 50th wedding anniversary, if the husband is aged exactly 50, his

Reasons for Different Interest Rate Interest rates may differ in different market and market segment since: i) Size of the loan: Deposits above specific amounts into the

Requirements for Raising Loan Requirements for Raising Loan are as follow: a) Subsidiaries of the company and History. b) Qualifications, ages, and names of the company's dire

flotation cost of 15% for bond, bonds 8%,$1,000 par value, 16 year maturity

Capital Asset Pricing Model (CAPM) CAPM is a methods that is used to establish the required rate of return of an investment provided a particular level of risk.  According to

Imagine Joy is the project coordinator in a company where four projects are running concurrently. He's employed you as the senior business analyst to perform some financial calcula

Agency Theory The agency problem between managers and shareholders can be resolved via paying high dividends. If retention is low, managers are necessary to increase additiona

1. Suppose company A expects to increase unit sales of i-phone by 15% per year for the next 5 years. If you currently sell 3 million i-phones in one year, how many phones do you ex

Ask question #MinimQuestion You are the financial accountant of Donald Bhd, a manufacturer and wholesaler of soft drinks. Donald Bhd is in direct competition with Fizz Bhd and Po