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what is One of the advantages of leasing

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter19: Lease Financing

Section: Chapter Questions

Problem 4MC

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Question

what is One of the advantages of leasing rather than purchasing an asset is that leasing offers flexibility and a lower cost when disposing of the asset? Explain.

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Similar questions

List four potential benefits to the lessor of leasing versus selling an asset.
How does Leasing offer flexibility and a lower cost when disposing of the asset?
explain motivations for leasing assets instead of purchasing them;
Which of the following typically represents an advantage of leasing over purchasing an asset with an installment note? a. Lease payments often are lower than installment payments.b. Leasing generally requires less cash upfront.c. Leasing typically offers greater flexibility and lower costs in disposing of an asset.d. All of the above are advantages of leasing.
Which one of the following is not an advantage of leasing fixed asset? a. Repairs and maintenance are borne by the lessor b. Risk of loss due to obsolescence is on the lessee c. Lessee has access to asset without the need to purchase the asset d. Lessor becomes the owner of the asset
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How does the Leasing reduce the upfront cash needed to use an asset?
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Which of the following costs are NOT typically capitalized when acquiring a new piece of equipment? Calibration costs Interest on the loan necessary to acquire the equipment Freight charges to bring the equipment to its intended location Installation costs
Which is not an advantage of leasing from a lessee's viewpoint? A.The asset can be acquired without having to make a substantial down payment. B. Leased assets are never reported on the balance sheet. C. The risk of obsolescence may be reduced. D. A lease may provide 100% financing.