1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
postnew [5]
3 years ago
6

There are two parties in any lease contract—the lessee and the lessor. To a lessor, a lease analysis involves a capital budgetin

g analysis of the property or equipment to be leased. The lessor’s decision is either to purchase and lease-out the asset, or not make the investment at all.
Like any capital budgeting decision, the lessor needs to evaluate the rate of return expected to be earned from making the lease. Further, since the cost and other terms of leases involving high-cost items are negotiated, this rate of return information is also important information for a prospective lessee.

From the following statements, identify the steps involved in lease analysis from a lessor's perspective. Check all that apply.a) Determine the lease payments minus income taxes and any maintenance expenses that the lessor must incur as per the lease agreement.b) Determine the net cash outlay of the lease agreement.c) Determine the invoice price of the leased equipment plus any lease payments made in advance.d) Check & ensure that the NPV of the lease remains negative.
Business
1 answer:
inn [45]3 years ago
4 0

Answer:

a, b

Explanation:

It is important to note that a lessor's goal is to make a profit, thus he would be more concerned about knowing what is the value realized after subtracting the lease payments from his income taxes and any maintenance expenses that must be incurred as per the lease agreement.

In order to be cost efficient, he might as well determine the net cash outlay of the lease agreement.

You might be interested in
Type the correct answer in the box. Spell all words correctly.
umka21 [38]
Do you have a word bank?

i think 1: flowchart
2: first
5 0
3 years ago
Read 2 more answers
Money demand is given by md/p = 1000 .2y - 1000i. given that p = 200, y = 2000, and i = .10, real money demand is equal to?
Marrrta [24]

The real money demand is equal to $2,60,000

Money demand/ P = 1000+0.2Y -1000i

Money demand/200= 1000+0.2(2000)-1000(0.1)= 1000+400-100

=1300

Money demand  /200 = 1300

Money demand  = $1300*200

= $2,60,000

Money demand is the demand for real cash balances as people hold onto money to purchase goods and services. The higher the price level, the more money you need to buy a certain amount of goods.

Learn more about Money demand here:brainly.com/question/24109874

#SPJ4

4 0
2 years ago
Our company is going to export bamboo products to the United States. The bill of lading shows the name is BAMBOO STAKES which mu
Alecsey [184]

Answer:

For the wooden handicrafts products, it is regulated by the animal and plant health inspection service (APHIS) in the United ...

8 0
3 years ago
Cleveland Company purchased $2,700 of inventory on account from Pinto Industries on March 8th. The terms were 2/15, n/45. Clevel
Gala2k [10]

Solution:

Accounts Payable          $2900

Cash                                $2691

Inventory                         $209

Cleveland didn't pay during the discount period,  

So the amount due is $2,700 - 450 = $2,250

Cash was charged in freight charges prior to delivery of the invoice.

4 0
3 years ago
) Two restaurants are on the same block. One has been opened for 10 years and its a thriving business. The other one has been op
CaHeK987 [17]

Answer:

The one that has been operating for the past ten years.

Explanation:

This is so because, the bank will consider it of factors which will include:

1. the stage in the life cycle of the company.

2. the credit risk level of the company.

3. the attractiveness of the company to investors.

4. the going concern assumption of the company.

Overall, the interest rate will be dependent on the kind of credit rating of the company. for a company which has been existing for long and which is thriving, the credit rating will be low. hence the bank will be taking a lower risk in giving the loan; hence the lower interest.

However for a new entity with a higher credit risk, the bank is taking a high risk lending money to such company, hence it will loan the new company at a higher interest rate.

8 0
3 years ago
Other questions:
  • Six-month call options with strike prices of $35 and $40 cost $6 and $4, respectively. You plan to create a bull spread call (Bu
    10·1 answer
  • If the number of employed is 220,000, the labor force is 250,000, the number of discouraged workers is 15,000, and the number of
    13·1 answer
  • Debt that is callable by the creditor in the upcoming year, but is not expected to be called, is reported as
    13·1 answer
  • DeFeet International started as a cyclist sock company. The founder, Shane Cooper, said that the existing socks for cyclists wer
    9·1 answer
  • You work for an advertising agency. You have been assigned to come up with an advertising campaign for a new brand of designer w
    6·1 answer
  • If workers are more educated, then short-run aggregate supply ___________.
    11·1 answer
  • Match each cost with the investment type to which it relates. investment advisory fees administrative costs commissions hourly f
    9·2 answers
  • 5) Explain the difference between value analysis and value engineering.
    5·1 answer
  • What cortex is the decision-making and planning center of consciousness
    12·1 answer
  • Say’s law argues that a given ____________________ must create an equivalent ________________________ somewhere else in the econ
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!