How does Leasing offer flexibility and a lower cost when disposing of the asset?

Q: e. What is the cost of leasing? Do r

A: Leasing Cost: It is the present value of the lease costs annually discounted at the borrowing cost.…

Q: Explain Leasing Commissions and Related Costs?

A: Answer: Leasing commissions: Leasing commission is nothing but fees or premium paid in the form of…

Q: There are several asset pricing models used to determine an asset’s intrinsic value, the most…

A:

Q: Describe the environment related to leasing transactions.

A: Lease:

Q: leasing

A: Introduction: Leasing is defined as an agreement between two parties known as lessor & lessee…

Q: What are some advantages to shortening the lease time?  What are some disadvantages?

A: Lease is a type of financing undertaken by a person (Lessee) to acquire right to use an asset for a…

Q: If the residual value of a leased asset is guaranteed by a third party:

A: A lease is an arrangement under which a lessor agrees to allow a lessee to control the use of…

Q: one of the following is not a primary disadvantage of leasing from the lessee perspective is the:

A: Lease can be defined as the contractual arrangement calling for the lessee to pay the lessor for the…

Q: What is a sale-and-leaseback transaction?

A: Sale and leaseback is a deal in which the owner of an asset trades an asset, typically real estate,…

Q: explain motivations for leasing assets instead of purchasing them;

A: Introduction: Leasing is a mechanism by which the company may receive some capital assets for use,…

Q: When does a buyer-lessor recognize a financial asset from a sale and leaseback transaction? Fair…

A: If sale price is greater than the fair value than the ROU asset should be recognised...

Q: How does the company can benefit indirectly by leasing assets rather than buying?

A: Company can take benefit of leasing assets rather than buying assets due to many reasons: Leasing…

Q: Are there advantages of leasing its equipment that HG should consider?

A:

Q: Can the selection of a depreciation method affect a company’s asset replacement policy (i.e., the…

A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…

Q: lessee

A: Lease is a financial arrangement where the right to use the asset is given by the owner to another…

Q: Define the term net advantage to leasing (NAL).

A: NAL It is the money that an entity or an individual saves from taking an asset on lease instead of…

Q: Why would refinancing be an alternative to sale of the property?

A: Individuals always buy the properties taking the mortgage because payment for buying the property…

Q: Discuss the risks associated with short selling an asset. Use examples and empirical evidence in…

A: A short-selling of an asset or stock means that the investor sells the borrowed securities…

Q: When is Leasing used?

A: Fixed assets are those type of assets which are being held by the business for longer period of…

Q: advantage (disadvantage) of renting out the building?

A: Annual sales P10550000 Less Expenses   Annual cost of goods sold and other operating expenses…

Q: What are the features of Rent premiums for industrial/warehouse properties that might be added for…

A: Introduction: The given question is based on the notion of rent discounting in real estate finance.…

Q: What are two advantages and two disadvantages of renting over purchasing equipment?

A: Renting over purchasing equipment: Purchase of equipment is treated as a capital expenditure which…

Q: Which one of the following is not an advantage of leasing fixed asset? a. Repairs and maintenance…

A: The basic concept of lease contract is there are mainly two parties involving in this lease…

Q: Discuss the residual value of the leased asset. How does it impact the PV of rental payments…

A: Lease means a type of agreement in which one party gives its valuable assets to other party for a…

Q: How much is the initial cost of the asset?

A: Purchase price  Less: Trade discount/Rebate  Add: Import Duties  Add: Non refundable taxes  Add:…

Q: How do fixed asset systems differ from purchases systems?

A: Definition: Purchase system: The identification and procurement of the inventory needs for the…

Q: The right-of-use asset may be measured using the following models except for: Group of answer…

A: The right of use asset is measured by adding the lease liability and initial direct cost of the…

Q: Explain Effective Cost of the Sale-Leaseback?

A: Sales leaseback is a type of financial transaction where the owner sold its property to the other…

Q: What is net advantage to leasing (NAL)?

A: Leasing refers to an agreement between two parties to use asset of one by other in exchange of some…

Q: difference between hire purchase and leasing

A: The hire purchase and leasing are mainly different due to the term of ownership.

Q: What is leasing? Explain the process of leasing’s Underwriting process of Tenants.

A: Lease can be defined as a right to use equipment or capital goods on payment of periodical amount…

Q: Depreciation is a process of asset valuation where an asset's book value (cost less accumulated…

A: Depreciation is an accounting method of allocating the cost of tangible assets over its useful life.…

Q: What are the key advantages and disadvantages of leasing?

A: Leasing:Leasing is a contractual agreement between the lessor and lessee for hiring of a particular…

Q: How can you apply the concepts of “Time Value of Money” in deciding for Rent-Buy-Lease of Equipment?

A: Time value of money in deciding for Rent All the future rents are converted to present value in…

Q: What is the requirement of the general description of the leasing arrangement?

A: Definition: Lease: Lease is a contractual agreement whereby the right to use an asset for a…

Q: ) How could rates of technological change affect a company’s decision about whether to buy or lease…

A: Rate of technology plays a crucial role in the decisions made by companies. If the technology is…

Q: Which of the following scenarios regarding a sale and leaseback transaction would result to a loss…

A: If fair value is less than the carrying amount of the asset then the loss on sale back should be…

Q: What is the objective in identifying the costs of an asset?

A: Asset:   It represents the tangible and intangible resources owned by the business for a particular…

Q: Why do person choose to buy on lease?

A: Lease: Lease refers to a contract that outlines the terms under which one agrees to rent his or her…

Q: How can we determine the unit profit of operating an asset?

A: Operating income: Operating income measures the organization’s profitability (includes all incomes…