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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.

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igomit [66]
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5 0
3 years ago
Based on the parkerian hexad, what principles are affected if we lose a shipment of encrypted backup tapes that contain personal
xeze [42]

Answer:

Possession or control

Explanation:

From the perspective of the Parkerian hexad, the affected principles if a shipment of encrypted backup tapes belonging to customers and having their personal and payment information are possession or control. This is considered a physical media disposition on which the information was stored. To effectively and accurately describe the incident scope, the principle of possession would help us do this.

3 0
3 years ago
Annual maintenance costs for a particular section of highway pavement are $2500. The placement of a new surface would reduce the
rewona [7]

Answer:

The maximum investment is $6,360.111

Explanation:

Giving the following information:

The placement of a new surface would reduce the annual maintenance cost to $500 per year for the first 3 years and to $1000 per year for the next 7 years. After 10 years the annual maintenance would again be $2500.

We need to find the net present value. The maximum initial investment will be the amount that makes the NPV cero.

NPV=∑[Cf/(1+i)^n]

Cf= cash flow

<u>For example:</u>

Year 1= 500/1.05= 476.19

Year 3= 500/1.05^3= 431.92

Year 5= 1,000/1.05^5= 783.53

NPV= 6,360.111

The maximum investment is $6,360.111

6 0
3 years ago
Unemployment would cause an economy to Group of answer choices produce outside its production possibilities frontier. produce in
bagirrra123 [75]

Answer:

The correct answer is: produce inside its production possibilities frontier.

Explanation:

The production possibility frontier shows the maximum possible combination of two goods that an economy can produce using all the available resources and state of technology.

Unemployment in an economy means that all the available resources are not being completely used. So, the economy will operate at a point inside the production possibility curve.

Production at this point will be feasible but allocatively inefficient.

3 0
3 years ago
Help plz! Will mark brainliest!!!
dimaraw [331]

Answer:

Record all transactions in a check register.

Explanation:

It's easier to track how money is spent if there is a paper trail.

5 0
3 years ago
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