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Leasing

Financial Effect of Lease vs Buy

How is the rate of return for assets and equity, respectively, effected by the decision to lease or buy? If the lease is capitalized, wouldn't the results be the same as if I bought the item?

Analyzing Leasing versus Buying Decisions

1. For a high technology item, like computer equipment, is the lease option preferable from the very outset. Why or Why not? 2. Do factors like for example down payment and the security deposit that has to be paid-up front on an asset, have a major influence on a lease or loan option? 3. Under what circumstance is a capi

Remedies for Breach of Sales and Lease Contracts

Hello attached is the work i have created. I need to see if number 4 sounds correct and need help in solving number 6. Thank you. 4. Appropriate management response to the situation to limit legal liability. 6. Preventative measures that management can take to limit liability in the future. Explain the action that m

Sales and Lease Contracts

Hello attached is the work i have created. I need to see if number 4 sounds correct and need help in solving number 6. Thank you. 4. Appropriate management response to the situation to limit legal liability. 6. Preventative measures that management can take to limit liability in the future. Explain the action that ma

Financial Leases and Off Balance Sheet Financing

1. Could you discuss some of the advantages of Financial Leases, and please contrast where this approach might be used. 2. The issue of "off Balance Sheet" activities has come under acute scrutiny because of the Enron debacle. What would some of the implications be of off balance sheets financing with respect to tax and acco

Journal Entries

Could you let me know if I am on the right track with the answer for this extra credit assignment. We have to do the entries, complete a trial balance, income statement and balance sheet. Extra Credit Problem: Congratulations, you have just been offered the position of Controller for JP Inc, a diversified manufacturer of

Balance sheet

Using the attached excel file, please answer the following, and provide some details. Thanks. a. What were the company's total current assets at the end of its most reporting period? What were the company's total current assets at the end of the previous period? b. Are the assets included under the company's curren

Purchasing Network Servers

Please help with the following finance-related problem. Your company wants to purchase a new network file server for its wide-area computer network. The server costs $75,000. It will be completely obsolete in three years. Your options are to borrow the money at 10 percent or to lease the machine. If you lease, the payments w

Lease Analysis

Hello, i need help solving problem wo, attached is the case. 10. There is a possibility that Agro-Chem will move to its new production facility earlier than anticipated, and hence prior to the expiration of the lease. Thus, Audrey is considering asking Lonestar to include a cancellation clause in the lease contract. What imp

Lease Analysis

Hello, I am doing a case study which is attached. I need help solving problem 9. Based on a 4-year use of the asset, a 7.2 percent after-tax discount rate on the cash flows of the lessee, and a 12 percent after-tax discount rate on the cash flows of the lessor (that is, the original conditions), you should have found that

Investments

Please see the attached excel sheet. I tried to solve the problem but I need assistance to complete it. Please explain briefly.

Describe a systematic approach to evaluate a business opportunity.

As a student, how can you think about properly evaluating a business opportunity? In particular, what is a rigorous approach to evaluating the risk in buying a business and to properly evaluating that business. The approach suggested in the solution can be adapted to other types of business analyses, which you may be asked to

Hard Removals: Analysis of Lease or Buy option for a new truck

I don't understand how to incorporate the 70% owner's equity and 30% debt into the calculation. Can you please provide me step by step instructions on how to solve this question correctly or provide me with the solutions so I can verify it where I went wrong. The firm, Hard Removals, is operated by a sole proprietor, and is