How can you apply the concepts of “Time Value of Money” in deciding for Rent-Buy-Lease of Equipment?
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How can you apply the concepts of “Time Value of Money” in deciding for Rent-Buy-Lease of Equipment?
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- Discuss the residual value of the leased asset. How does it impact the PV of rental payments computation of the Lessee and the computation of the rental payment by Lessor?Which are three types of investment flows are associated with buying a piece of equipment?What is lease rent and lease income? Do I have to record initial direct costs when I record payment? Do I need to derecognize the asset?
- Discuss the residual value of the leased asset. How does it impact the PV of rental payments computation of the Lessee and the rental payments computation by Lessor.how to calculate gain on the sale of equipmentDemonstrates the difference between depreciation costs as expenses and the cash flow generated by the purchase of a fixed asset? Give an example?
