Relation between lease finance and purchase

Dr Haradhan Mohajan ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper discusses the long-term financial lease contracts with lease evaluation. Here a comparatively simple and straightforward solution of neutralizing the risk of lease financing is explained. The lease is a contract between the owner and the user of assets for a certain period during which the second party uses an asset in exchange of making periodic rental payments to the first party without purchasing it. In the long-term lease contract the lessee (the user of assets) is generally given an option to buy or renew the lease. An attempt has been taken here to investigate the buy or lease decision of an asset of a competitive firm.

Keywords: Lessor and lessee; Purchase and lease; Cash flow. (search for similar items in EconPapers)
JEL-codes: G32 (search for similar items in EconPapers)
Date: 2012-01-18, Revised 2012-02-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Published in International Journal of Economics and Research 3.3(2013): pp. 146-158

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:50681

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