Buy versus Lease

Harold Bierman
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Harold Bierman: Cornell University, USA

Chapter 12 in An Introduction to Accounting and Managerial Finance:A Merger of Equals, 2010, pp 223-245 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractThe following sections are included:FAS13: Accounting for LeasesExample of Accounting for LeasesLessors and LesseesThe Pros and Cons of LeasingThree Basic ProblemsSeparating Financing and InvestmentThe Problem Even with a Zero-Tax SituationExample 12.1: Buy-Borrow versus LeaseThe AssumptionsThe ProblemThe AnalysisThe DecisionExample 12.2: Acquire the New Equipment?The ProblemThe AnalysisThe DecisionThe Proper ComparisonA Lease Is a DebtThe Effect of TaxesA Method of SolutionRisk-Adjusted Discount RateDebt Calculations Using 0.20Residual ValueThe IssuesThree DecisionsConclusionReview ProblemsQuestions and Problems

Keywords: Accounting; Finance; Mergers and Acquisitions; Managerial Finance (search for similar items in EconPapers)
Date: 2010
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